Jasper Infotech-owned digital wallet FreeCharge is in talks with Bank of Baroda (BOB) and Times Internet for an all-cash acquisition. According to a report, the deal size is expected to be in the range of $60 – $75 million. This deal will allow BOB to expand its mobile wallet service, wallet M-Clip it launched last year and also to get access to millions of young customers has on its platform
The deal, if successful will allow Bank of Baroda to expand its mobile wallet service. Last year BOB launched its own mobile wallet M-Clip and with this acquisition, BOB aims to get access to millions of young customers FreeCharge has on its platform. Whereas with this deal Times Internet looks to add the wallet service to its online ventures like as Indiatimes Shopping and Gaana to name few.
Prior to this, it was reported that both Paytm and MobiKwik are also in talks for the FreeCharge acquisition. While Paytm has already signed a non-exclusive term sheet with FreeCharge at an expected deal value of $45 – $90 million, MobiKwik deal has still not moved beyond speculation.
Founded in 2010 by Kunal Shah and Sandeep Tandon, FreeCharge was acquired by Snapdeal in April 2015 for $450 million which is currently valued at less than 80%. Not only this, recently it also received an investment of $3.38 million from Jasper Infotech.
Company backed by investors such as Valiant Capital Management, Tybourne Capital Management, and Sequoia Capital had secured total of $177.65 million in six rounds of funding including the funds infused by its parent company.