Snapdeal To Raise About $300 Mn For FreeCharge: Report

Snapdeal To Raise About $300 Mn For FreeCharge: Report

Jasper Infotech, which owns ecommerce platform Snapdeal, is in talks with existing and new investors to raise about $300 Mn (INR 2000 Cr) for its digital services platform, FreeCharge, reports ET. However, Snapdeal declined to comment on what it called ‘speculation’.

Earlier this year, Freecharge was acquired by Snapdeal for over $450 Mn, making it one of the biggest transactions in the Indian startup space.

The development comes in less than three months after Snapdeal raised about $500 Mn from Alibaba, Foxconn and SoftBank.

Founded in 2010 by Kunal Shah and Sandeep Tandon, FreeCharge, after merging with Snapdeal launched a common account and common wallet service namely ‘Freecharge Wallet’. Currently, it has about 8.2 Mn unique daily users, 20 Mn stored cards and a combined GMV value of over $4 Bn.

The acquisition of Freecharge was part of Jasper’s ambition to take over a market of holistic ecosystem of goods and services, keeping it ahead of rivals like, Flipkart, currently the largest ecommerce company in the country, and Amazon.

Retrospecting the previous developments, Flipkart left its other competitors behind with its ‘Big Billion Day’ sale.

Sole funding for FreeCharge is expected to aid Snapdeal to encounter Paytm, which recently raised about $680 Mn from Alibaba and its affiliate and is steadily venturing into different avenues, including building a swift online marketplace. It is one of the 11 entities to receive an RBI license to start a payment bank.

Freecharge’s present investors, including Sequoia Capital, Valiant Capital and Tybourne Capital, ru-Net and Sofina, will continue to hold Snapdeal stock thereby ensuring that the new funding round is not expected to have any secondary components.

Welcome to Flash Feed, your essential source for breaking news and innovation from around the web – bite-sized and updated all day.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

Unlock 60% OFF
Cancel Anytime
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Snapdeal To Raise About $300 Mn For FreeCharge: Report-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Snapdeal To Raise About $300 Mn For FreeCharge: Report-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Snapdeal To Raise About $300 Mn For FreeCharge: Report-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Snapdeal To Raise About $300 Mn For FreeCharge: Report-Inc42 Media
Snapdeal To Raise About $300 Mn For FreeCharge: Report-Inc42 Media
You’re in Good company