Amid developments of Snapdeal's sale to its bitter rival Flipkart, the mobile wallet space is buzzing with a possible merger between FreeCharge and MobiKwik.
According to a report in Business Standard, FreeCharge plans to merge itself in an all-stock deal with MobiKwik.
After the merger, the new entity is likely to get a top-up of $200 million (nearly Rs 1,300 crore) from a Chinese investor who is eager to make an entry into India, the report said.
Snapdeal's loss making digital wallet arm, FreeCharge has been struggling to raise fresh capital for more than a year. MobiKwik has also been in talks to raise more funds.
In March, online marketplace Snapdeal had announced the appointment of Jason Kothari as the Chief Executive Officer of FreeCharge and a commitment to invest an additional $20 million in the digital wallet.
According to reports, both MobiKwik and FreeCharge are worth $300 million, each, and would get about 45-50% stake in the merged entity. And, a merged entity could be valued at anything between $700 mn to $1 billion.
Earlier, SoftBank-backed digital wallet firm which is now owned by Snapdeal was said to be in talks with Paytm for a potential sale.