Snapdeal Buys FreeCharge to Strengthen its Stand in the Mobile Commerce Market
E-commerce website, Snapdeal, is one of the most prominant players in the market along with Flipkart and Amazon. The company has now announced that it has acquired the mobile payment app, Freecharge. With this move the company hopes to gather more users as well as create new services to extend its offerings.
FreeCharge lets users pay for their mobile recharges, DTH and utility for multiple service providers. Every day 75 million mobile recharges are done in India out of which only 3 Million are done online, so it is definitely a massive market to have captured. While the service providers do provide online payment options, there has been a growth in the number of payment apps in the market.
Speaking on the acquisition, Snapdeal founder, Kunal Bahl said, “The age of monolithic e-commerce platforms is over; it is now time to build an impactful digital commerce ecosystem in India that is multidimensional and inclusive…At Snapdeal we are building an ecosystem that powers billions of digital commerce transactions in the country in the coming years. “
FreeCharge’s founder, Kunal Shah said that their service is at the forefront of the mobile commerce revolution in India. He added that 85% of our transactions originate from mobile, and the user retention of the service is really high.
Following this deal, FreeCharge will continue to operate as an independent service. Snapdeal says that it will collaborate with its new partner to offer innovative services to the users. We’ll get to know more about how Snapdeal will benefit from this deal in the near future.