Snapdeal-owned payment app Freecharge, has secured about Rs. 390 Cr. by Jasper Infotech to further scale its technological products and operations, reported ET.
The latest capital infusion received by FreeCharge was declared by the company in a filing submitted to the Registrar of Companies (RoC) in the last week of December. Jasper Infotech also owns and operates online marketplace Snapdeal.
The infusion also follows a special resolution passed in the first week of December, where FreeCharge increased its authorised share capital from Rs 6 Cr. to Rs 1,006 Cr., setting stage for a significant round of funding to come in.
Over the past several months, FreeCharge has been looking to raise funds. Most recently, a media report said that the company is in talks with global online payments company PayPal to sell around 25% of its stake for about $200 Mn.
Again, in October last year, SoftBank was reportedly in talks to invest in FreeCharge. In August 2016, VCCircle reported that Chinese Internet giant Tencent was evaluating a proposal to invest $150 Mn in FreeCharge. Alos, In the same month, it was reported that Snapdeal was in talks with Foxconn, the Taiwanese contract electronics manufacturer and an existing investor, to sell close to 26% stake in FreeCharge.
FreeCharge, which was acquired by Snapdeal in a $400 million-deal in 2015, competes with Paytm and MobiKwik. Paytm is backed by Chinese e-commerce giant Alibaba Group, which is partly owned by SoftBank.
Since the acquisition, Snapdeal has been looking to monetise its investment in FreeCharge to build a larger play in mobile commerce.
The capital infusion comes at a time when the online payment industry has seen its growth accelerate after Prime Minister Narendra Modi decided to scrap old high-value banknotes on 8 November. Mobile wallets such as Paytm, FreeCharge and MobiKwik have seen their business rise manifold.