Snapdeal acquires FreeCharge to become India’s largest m-commerce company!April 09, 2015 19:45
(Image source from: Snapdeal acquires FreeCharge to become India’s largest m-commerce company!})
One of the largest online shopping portal Snapdeal have agreed a deal to buy mobile recharge service Freecharge; their biggest acquisition, Kunal Bahl, Snapdeal CEO revealed on Twitter. The deal is reportedly worth Rs 2800 crore; making it one of the biggest purchases in the startup e-commerce sector. Snapdeal.com were looking to further to strengthen its business and reach $2 billion in gross merchandise value this year and this move is expected to considerably boost their business.
The terms of this Snapdeal-Freecharge deal have not been disclosed. As Freecharge competes with the other contemporary mobile commerce websites such as Paytm, which boasts of daily mobile transactions of more than 1 million, this move will definitely be a positive one for both the parties. But FreeCharge will continue to function as an independent platform.
Snapdeal chief executive Kunal Bahl said, “Ninety per cent of Internet users in India within the next few years will be mobile only. It becomes very important to have a very strong mobile commerce strategy.” Currently the fashion business contributes to over 60 percent of the volumes of orders at Snapdeal. Here’s what Kunal Bahl tweeted after the merger made them India’s largest m-commerce company!
In last few months Snapdeal have acquired many such websites. They acquired Wishpicker.com that offers users gift options based on intelligent recommendations, also acquired premium and luxury fashion site Exclusively.com. This collaboration will offer an even wider range of products and services including financial services, mobile recharge and utility payments.
- Manohar. M