FreeCharge is planning to merge with MobiKwik in an all-stock deal
After the Flipkart and Snapdeal, SoftBank-backed FreeCharge is in talk with Gurugram-based mobile wallet company MobiKwik for a potential merge. FreeCharge has been struggling to raise fresh funds for over a year, while MobiKwik had been in talks to raise a larger round for the past couple of months.
If both the companies come together, the newly combined entity is likely to receive an investment of around $200 Mn from a Chinese investor.
The chinese investor who wants to invest in this merged entity said..
“Everybody knows that Paytm is dominant, hence nobody wants to invest in a company that is not really well-placed. But, a merged entity may have more muscle to rival Paytm.”
Both MobiKwik and FreeCharge are valued at around $300 Mn each and the merged entity would be marked somewhere around $700 Mn-$1 Bn. Both the firms will get about 45-50% stake in the merged entity. The shareholding of the merged entity will depend upon the valuation of these two companies.