Amazon India had been granted license by the Reserve Bank of India to operate a pre-paid payment instrument or wallet. The central bank issued the wallet licence in the name of Amazon Online Distribution Services, which also operates Amazon Pay that allows users to transact with offline partners of Amazon and online for Amazon's marketplace services on Amazon.in and Amazon Now.
FreeCharge was acquired by Jasper in 2015 in a cash-and-stock deal estimated at $400-450 million, in what was then the largest acquisition in the Indian startup space. However, the payments unit has been seeking a buyer for several months now, even as its parent negotiates the terms for its own sale. At one point, Jasper was eyeing a valuation of close to $1 billion for FreeCharge, as it tried to raise cash for unit, a process that began in late 2015. However, the reversal in the fortunes of Snapdeal had a drastic effect on FreeCharge, which saw the volume and value of transactions fall sharply. The company is estimated to have recorded Rs 300 crore in transaction revenue on about 12 million transactions in April. In its heyday, the payments company had forecast 7 million daily transactions and gross merchandise transactions of Rs 20,000 crore by the end of fiscal 2017.