The fate of FreeCharge now in the hands of its biggest competitor. One of India’s biggest digital wallet provider Paytm has signed a non-exclusive term sheet to acquire Snapdeal owned Freecharge. The consolidation will make Paytm India’s biggest and undisputed champion in the digital mobile wallet space.
The deal is expected to be an all-cash deal, which is valued between $45 million to $90 million. Paytm will start financial and commercial due diligence of FreeCharge next week. If the due diligence process goes as planned, then we have the deal finalised in a month’s time, reports Economic Times. As Paytm has only signed a ‘non-exclusive’ agreement, Snapdeal got the freedom to pitch the deal with other players and explore more options.
Paytm to acquire FreeCharge
- Paytm signed a non-exclusive term sheet to acquire Freecharge.
- Deal worth to be between $45 million and $90 million.
- Paytm to do a complete financial and commercial audit of FreeCharge to finalise the deal.
Note that back in April 2015, Snapdeal acquired FreeCharge for around $400 million. According to ET data, FreeCharge has recorded around 300 crores in transaction revenue and 12 million in volume in April 2017 from its recharge and bill payment business. When compared to that, Paytm got around 218 million users with around 10 million transactions a day.