Bangalore: Indian e-Commerce giant Snapdeal has acquired a mobile recharge platform Freecharge in the biggest startup acquisition deal by beating the previous deal of Myntra last year. The financial terms of the deal were not disclosed. According to the media reports, the deal value to be around Rs.2800 crore ($300-450 million).
SoftBank Corp backed Snapdeal has raised around $1 billion across multiple rounds in recent year. With this game changing partnership Snap deal is looking to be India’s largest mobile commerce platform by competing with online shopping giants like Flipkart and Amazon.
Kunal Bahl, CEO, Snapdeal says, “Easy availability of smart phones resulted that every transaction should be made via apps. Once the companies are combined, about 1 million transactions will take place daily”.
Last month, Snapdeal acquired a majority stake in RupeePower, Gurgaon based digital financial products distribution. In addition, the company obtained a minority stake in logistics firm QuickDel Logistics Pvt. Ltd. along with lifestyle e-tailer Exclusively.in.
In the past, Snapdeal also obtained a stake in online product and price comparison site Smartprix Web.
Founded in August 2010 by Sandeep Tandaon & Kunal Shah of Mumbai based Accelyst Solutions Pvt. Ltd., FreeCharge is one of the India’s top recharge platforms which allow users to pay their mobile recharges, utility bills and DTH across major operators.
Two months back, FreeCharge raised $80 million in series C round of funding from Valiant Capital Management and Tybourne Capital Management along with other investors. In 2012, the company raised Rs.20 crore from Sequoia Capital.
With its successful run, Snapdeal is looking to clock $8 billion this year in GMV. This would compete with MobiKwik, Paytm among others.