Indian e-commerce marketplace Snapdeal has minted a deal to sell its digital platforms FreeCharge to major Indian private sector lender Axis Bank for Rs 385 crore (US$60 million), according to multiple media reports.
With new buyout, Axis Bank will now have access to FreeCharge’s base of over 50 million mobile wallet users, its staff of about 150 – 200 and its resources and proprietary tech.
The deal comes off the heels of yesterday’s confirmation of Snapdeal’s US$950 million buyout deal by rival e-commerce firm FlipKart.
Founded in 2010, Freecharge is an online platform that provides pre-paid mobile recharging services to consumers, in partnership with telecom operators such as Vodafone, Airtel, Reliance, Idea, Aircel and BSNL.
The portal gives discount coupons to consumers for each transaction done through it. These coupons can be redeemed at various food outlets and retailers.
FreeCharge was first acquired by Snapdeal in 2015, who leveraged its platform to boost its mobile commerce business. The deal was reportedly worth about US$400 million.
In April, Alibaba-backed mobile payments and commerce platform Paytm was in talks to acquire FreeCharge for about US$45 – US$90 million, but the deal fizzled out.
Image Credit: Snapdeal