Around $400 million. That’s how much Snapdeal paid to acquire FreeCharge in April 2015. A significant part of the transaction was in stock. Still, Snapdeal paid out $80 million in cash. Plus, when the acquisition happened, FreeCharge had about $80 million in the bank. At the time, this acquisition was celebrated. It was the largest deal in the consumer internet space in India. Bigger than Flipkart’s acquisition of Myntra ($300 million stock and cash). Cheerleaders heralded the coming of a bigger, stronger Snapdeal plus FreeCharge e-commerce combination; one, which would in some parts take on Flipkart.
What happens to FreeCharge?
The mobile wallet was one of the largest acquisitions in the consumer internet space in India. Now it is getting an indecent burial
Through last year, it was increasingly clear that FreeCharge didn’t have enough money to fight a good fight
Investment from Tencent fizzled out as it found the mobile wallet’s valuation too high. PayPal didn’t come through either
Currently, FreeCharge does 350,000 transactions a day. It is not a lot. Paytm claims it does 5 million transactions a day
Word on the street is that Paytm is the frontrunner to acquire FreeCharge. Paytm doesn’t need FreeCharge. It needs SoftBank