Several other companies have shown interest in acquiring FreeCharge. The company was in talks with Alibaba-backed Paytm which offered USD 10 million for the mobile wallet platform. According to The Times of India, Amazon was willing to pay more for the acquisition, but the Snapdeal-owned payments platform seems to have opted for Axis Bank.
The investment could turn profitable for the bank as it allows it to gain a strong footing in the digital payments market, especially since most traditional banks have not been able to secure a good market share in the mobile wallets segment.
Snapdeal has started losing market value since demonization kicked off in India in 2016. Prior to that, the company reported 1 to 1.5 million transactions, but as it started losing market share, volumes have dropped and the company halted the development of its mobile wallet platform.
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