After weeks of rumors, online marketplace Snapdeal has finally acquired Freecharge for an undisclosed amount.
Rumors of Snapdeal acquiring Freecharge for over for over $450 Mn through a mix of cash and equity sufficed in media last month, which makes this deal as the biggest one in the Indian startup space. Last year, Flipkart had acquired Myntra for over $300 Mn.
“The deal will help Snapdeal “offer all our customers access to the widest selection of products and services online,” Kunal Bahl, co-founder and CEO of Snapdeal said.
FreeCharge was founded in 2010 by Kunal Shah and Sandeep Tandon, head of technology conglomerate Tandon Group. In 2013, Alok Goel joined in the team as Chief Executive Officer after moving out of redBus. The company had raised $80 Mn in a round of funding led by groups of investors including, San Francisco-based Valiant Capital Management and Hong Kong-based hedge fund Tybourne Capital Management, in February. Previously, it had raised INR 200 Cr. in Series B round of funding and in 2012, Sequoia had invested about INR 20 Cr in FreeCharge and prior to that, it also led seed round into it.
Snapdeal Acquisition Spree
Snapdeal has been seen pretty active since past few months in acquiring startups. Just last week, it had acquired majority stake in the loans and the credit provider startup RupeePower, with the acquisition, it made a foray into financial services.