Online e-commerce portal ’Snapdeal’ has acquired online recharge platform ’FreeCharge‘ for $400 million that is Rs 2,400 crores, making it the largest deal in the online consumer internet space in India.

1. Snapdeal Buys Online Recharge Platform “FreeCharge” for
$400 Million: Vaikundarajan
Online e-commerce portal „Snapdeal‟ has acquired online
recharge platform ‟FreeCharge„ for $400 million that is
Rs 2,400 crores, making it the largest deal in the online
consumer internet space in India.

2. Snapdeal CEO Kunal Bahl said on Wednesday that the
joint entity would create the country's largest mobile
commerce platform with over 40 million customers.
About half of that comes from ‟FreeCharge„. The Delhi-
based company did not disclose the financial terms of the
transaction, but sources said the deal is said to be 30% in
cash and 70% in stock.
The deal is said to be an ammunition ton battle with
rivals in online retail sector. It is said ‟Flipkart„, with
which Snapdeal is in severe competition, has 30 million
registered users. Flipkart had acquired online clothing
firm ‟Myntra„ for over $330 million last year.
Buying the „FreeCharge‟ platform will give Snapdeal
access to a younger audience while most of the Snapdeal
customers range from 25 to 35 whereas most of
FreeCharge customers range from 18 to 25 age group.
FreeCharge was started in 2010 and its core strength was
mobile phones, it became more popular amongst the
youth because of its offers, says Vaikundarajan.
Snapdeal‟s Kunal Bahl said its motive is to add different
related offerings around its core platform. He also added

3. it‟s just like what the Chinese e-commerce platform
Alibaba has been doing. “Moreover, Snapdeal is backed
by Japanese telecom and internet major SoftBank Corp,
which is also a major stakeholder in Alibaba.” shares
Vaikundarajan.
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