SoftBank scouts buyer for Freecharge, Snapdeal's digital wallet arm

Mumbai: Softbank, Japanese telecom and internet giant, is working on plans to sell Freecharge, digital wallet arm of Snapdeal that has been in troubles for lack of funding and low profits, according to a report in The Economic Times.

Softbank is considering to sell Freecharge for an amount as low as $150-200 million, people privy to the development said.

Japanese conglomerate that has invested in a number of Indian start-ups has many probable suitors in its crosshairs. Report says Alibaba-owned Paytm is one of the front-runner buyers for the digital wallet.

"The e-wallet firm was bought by Jasper Infotech, Snapdeal's parent, two years back for $400 million in a combination of cash and stock," ET report said.

Over the past few years, Freecharge has been in talks with global digital payment players like PayPal and PayU for for raising more capital. But, the negotiations that sought funding failed.

At one point the digital wallet firm attracted attention of investors and it was estimated that Freecharge was valued at $900 million. Of late, Softbank has accelerated its investment activities in Indian start-ups and has already invested $2 billion in a number of upcoming companies.

The report added that SoftBank contacted Vijay Shekhar Sharma-led Paytm a few months back when Jasper Infotech wanted at least $500 million valuation for Freecharge.