Snaapdeal focuses on Mobile via Freecharge
Snapdeal is all ready to
scoop up freecharge for Rs2,800 cr.It is expected to be the biggest deal in
Indian e-commerce space.Snapdeal is looking to build competency in mobile &
data analytics space.It is all expected that the deal will be a mix of 40% cash
payout and the rest in stock.
It will be snapdeal’s 6th acquisition so far.In
past snapdeal has also bought Komli media an advertising company for worth $300
million. Till date the biigest acquisition was by Flipkart
which bouht myntra.com for nearly $370 million.
Now snapdeal’s plan is to acquire Freecharge for nearly $450 million nearly
Rs2,800 cr after in talks with China’s Alibaba to raise $1 billion (Rs 6,200
cr.). Snapdeal was backed by Japnese conglomerate SoftBank which invested $627
million in the company last October.
Snapdeal is looking to mimic the Alibaba model in
India.Snapdeal in India has seen a vast growth in past years.After acquiring
Freecharge, Snapdeal will have access to
the fast growing mobile market and credit and debit information.
If we look at Freecharge it had valued $350 million.Started
by Kunal Shah and Sandeep Tandon in 2010.Investor is Tybourne. Almost 70% of
transactions for ecommerce come from mobile and freecharge is growing by 400%
annually. Freecharge provides many restaurant and shopping coupons for its
users and offers are also great and it also has a good interface.Share holders
of Feecharge confirmed the deal but declined to share specifis.
So far, Delhi-based jasper Infotech which owns and operate
snapdeal, has announced five acquisitions and anoounced its fiscal
At last it’s all happening and we hope that it will give us
more savings.India’s E-commerce is witnessing hectic activity, from a mega deal
for a mobile recharge firm to a change in corner room at a startup
flipkart
freecharge
freecharge acqisation
snapdeal
snapdeal and freecharge
