Regulatory approvals are pending from the Reserve Bank of India to complete Axis Bank’s acquisition of FreeCharge as both are regulated entities, with the latter holding a prepaid payment instrument (PPI) licence.
The deal is expected to conclude by the end of September 2017.
J Sagar Associates (JSA) advised and assisted Jasper Infotech, which runs e-commerce site Snapdeal.com, on the sale of 100% of shares in the FreeCharge business (which comprises FreeCharge Technologies and Accelyst Solutions) to Axis Bank for US$60 million.
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“JSA assisted Jasper by drafting, revising and negotiating the transaction documents,” JSA lead partner Sidharrth Shankar told India Business Law Journal. “We also assisted with the completion of conditions precedent to the closing of the transaction.”
The JSA team for the transaction comprised partner Sidharrth Shankar, who was supported by principal associate Prakriti Jaiswal and senior associate CV Srikant. Axis Bank was represented by Cyril Amarchand Mangaldas.
FreeCharge is a digital payments company with more than 50 million registered wallet users and 200,000 merchants. Nearly 75% of its users are under 30 years old, with 85% of active users accessing their financial services from a mobile device. The FreeCharge wallet is used to make payments for telecom, DTH and broadband recharges, and for utility payments including electricity, gas and water bills.
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