Amid Snapdeal sale, FreeCharge and MobiKwik hold merger talks

The merged entity could be valued at anything between $700 million to $1 billion.

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.

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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.