India’s one of the top eCommerce companies Snapdeal has bought online recharge company FreeCharge for an undisclosed amount. On Wednesday, Snapdeal.com released an official statement confirming that it has acquired FreeCharge to form the largest mCommerce company of India.
Snapdeal buys FreeCharge
Snapdeal.com is managed by Jasper Infotech Pvt. While having strong investors like eBay Inc. and Softbank Corp. It has more than 40 million monthly active users and 1 Lakh+ merchants who are happily selling their stuffs using Snapdeal.com website as a virtual online store. There were rumors of Snapdeal buying FreeCharge, and now both the parties have made it official.
This FreeCharge acquisition will surely provide Snapdeal an upper hand over its nearest rivals in eCommerce space in India Flipkart.com and Amazon.in.
Mr. Kunal Bahl, Co-Founder and CEO at Snapdeal, said in a statement that this Snapdeal-FreeCharge deal will help the company to offer their customers special access to the widest selection of various services and products online.
We haven’t got any official confirmation about the details of this transaction, but a source close to deal have said that the acquisition cost around $450 million, and it was paid via equity and cash. Both these parties played a sweet proposal drama over Twitter today. Check their Twitter Conversation in the image below.
Snapdeal and FreeCharge
FreeCharge is a Mumbai based company managed by the Accelyst Solutions Pvt. Ltd. Earlier it got funding from Sequoia Capital, Sofina SA and a few more. It has more than 20 million monthly active users, and the best part is more than 85% of FreeCharge’s total transaction comes via mobile phones. It is indeed the undisputed leader of Indian mobile market.
Kunal Shah, Founder of FreeCharge, announced this news on Facebook while saying “Snapdeal + FreeCharge. Largest mcommerce company of India. Onwards and Upwards.”
We congratulate both Snapdeal and FreeCharge for this awesome deal, and hopefully it will become beneficial for both the parties in the upcoming days.