Snapdeal.com acquires Freecharge.in
E-commerce company, Snapdeal, announced yesterday its acquisition of Freecharge, a Mumbai- based mobile recharge platform. The numbers were not officially disclosed, but unnamed sources gave a ballpark figure of $400 million and said the acquisition is based on a cash and stock transaction. In days past, the media had reported that Snapdeal, which is owned by Delhi-based Jasper Infotech, was planning to buy Freecharge for about $450 million.
Jasper Infotech has partnered with various multinational investors including BlackRock, eBay, SoftBank, Temasek, Intel Capital, Premji Invest, Mr. Ratan Tata and Bessemer Venture Partners.
Freecharge.in, founded in 2010 by Kunal Shah and Sandeep Tandon, has raised over $120 million in funding over the past four years. Some of the investors that are backing Freecharge include Sofina, Sequoia Capital, Tyborne, Valiant Capital and Ru Net.
This is Snapdeal’s tenth buy out, other companies acquired include Exclusively.in, RupeePower and GoJavas to name a few. The company says this is the largest buy out in the Indian e-commerce sector. Until now, the largest e-commerce acquisition was Flipkart’s $300 million purchase of Myntra in 2014. Snapdeal says that once the deal is finalized, it will become India’s largest mobile commerce company.
Freecharge.in will continue operations as an independent platform, and business will continue as usual.
Co-Founder and CEO of Snapdeal, Kunal Bahl, commented on the transaction, “At Snapdeal we are building an ecosystem that powers billions of digital commerce transactions in the country in the coming years. With this game-changing partnership with Freecharge, we have significantly enhanced our user base and now offer all our customers access to the widest selection of products and services online.”
Co-Founder and CEO of Freecharge, Kunal Shah, added, “Freecharge is at the forefront of the mobile commerce revolution which is taking place in India right now. We have been ahead of the curve and as a result 85% of our transactions originate from mobile, and these transactions have very high repeat customer behavior.”