tech2 News StaffMar 06, 2017 17:03:37 IST
Snapdeal has been facing a lot of trouble and recently had to lay off a large number of employees. Even its mobile wallet company FreeCharge lost its CEO Govind Rajan. The latest news now suggests that Snapdeal is planning to sell Freecharge to online payments company Paypal.
According to a report, negotiations between Snapdeal's parent Jasper Infotech and multiple investors have been on for 18 months to raise $150-300 million in fresh capital. The deal is expected to value the around $500 million which is $100 million more than what Snapdeal paid for FreeCharge back in 2015.
While the information comes from ET who spoke to three people having knowledge of the development, both Paypal and FreeCharge have denied to comment on this.
"This will free up to a great deal Snapdeal's desperate need for funds at a time when investors are not willing to put money into its business," said one of them.
The deal would be beneficial to both FreeCharge as it will gain some backup and for Paypal as it will have a chance to strengthen its footprint in India.
If you remember, Snapdeal chief executive, Kunal Bahl in a recent interview with Reuters said that he hopes the company to become profitable in the next two years.
PayPal had recently filed a trademark infringement suit against Paytm saying that Paytm was using a similar looking logo and colour scheme.
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