Snapdeal acquired Freecharge for Rs 2,000 Crore
Snapdeal has today announced the acquisition of mobile recharge and m-commerce company Freecharge. Neither of the companies has revealed how much the deal is worth, but earlier reports claim that it could be around Rs 2,800 crore or $400 million. This would make it the largest acquisition by an Indian company.
Snapdeal CEO and co-founder, Kunal Bahl tweeted a photo with the caption, “Welcoming @FreeCharge rockstars to @Snapdeal family! Now India’s largest m-commerce company!”
As mentioned above, an Economic Times report last month claimed that the acquisition was worth Rs 2,800 crore. This would make it the biggest acquisition by an Indian company, overtaking Flipkart’s estimated $370 million (Rs 2,300 crore) acquisition of Myntra last year.
Snapdeal claims that with the acquisition of Freecharge, the combined company will have over 1 million daily mobile transactions. The latter has a user base of more than 20 million, and it garnered over 10 million app downloads in 2014 alone. It also claims that 85 percent of its transactions are now conducted on mobile phones.
Snapdeal has continued on its acquisition spree on the back of the $627 million (Rs 3,800 crore) funding by Japan’s Softbank. Freecharge too recently raised $80 million in Series C round of funding led by Hong Kong-based Tybourne Capital Management and San Francisco-based Valiant Capital Management firms. It also included existing investors like Sequoia capital, along with Sofina and RuNet. Previously, the firm had managed to raise $33 million in Series B funding round in September last year.
The m-commerce space has shown big signs of growth in recent time. Freecharge competitor Paytm too recently announced that Alibaba had acquired 25 percent in the company for an undisclosed amount. However, reports suggest that Alibaba paid in excess of $500 million, valuing Paytm over $2 billion. The company is also planning to hire 4,500 more people to expand operations in India.