Freecharge to be part of Axis Bank
27th, July 2017 - News
The board of Snapdeal which own and operate Freecharge has agreed to sell the digital payment platform to Axis Bank according to the source.
The proposed deal will value freecharge at Rs 385 Crore -390 Crore as per the source. Jasper Infotech acquired Freecharge for Rs 2400 Crore during 2014 which was supposed to be biggest acquisition in the Indian startup sector.
The sale of FreeCharge is a reflection of the reversal in fortunes of its parent, Snapdeal. The digital payments company, for which Jasper had, at one point, eyed a valuation of close to $1 billion, has undergone a sharp drop of its volume and value of transactions.
“The formal announcement of the sale could be made as early as Thursday,” the sources said.
The company is estimated to have recorded Rs 300 crore in transaction revenue on about 12 million transactions in April.
In its heyday, the payments company had forecast 7 million daily transactions and gross merchandise transactions of Rs 20,000 crore by the end of fiscal 2017.
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