Yesterday, we heard news related to the sale of Freecharge. Freecharge is one of the largest digital payment platforms in India. Snapdeal bought this platform in 2015 for about $400 millions. Snapdeal is facing a lot of troubles nowadays in the e-commerce market. Thus, it is going to sell Freecharge. Axis Bank is the third largest investor in India. It seems preferred bidder in this deal. The reports tell that the deal will be finalized in $50-$70 million. Earlier, Paytm and Amazon also showed interest in buying this platform. Paytm wanted to buy it in $10 million and Amazon wanted to get in $70-$80 million.
But now, Axis bank is the only favorite and today the deal would be announced. The executives of both Freecharge and Axis bank refused to say anything about this deal yesterday. The success of this deal would increase the customer database of the Axis bank. Axis bank is already running its own digital payment platform in the name of ‘Lime’. This acquiring of Freecharge would further strengthen this platform too. According to the reports, the 200 employees of Freecharge will absorb in Axis bank. The CEO would leave after the deal finalizes.
There is nothing said about the shift of headquarters of Freecharge. Freecharge has its headquarters in Mumbai while Axis bank is operating from Delhi and Bengaluru. Freecharge recorded about 12 million transactions in April 2017. Earlier, the CEO had talks with some foreign investors also. PayPal was also among the favorites to invest in Freecharge.
After acquiring Freecharge, Axis bank would approach about 20 million wallet users. There are also one million offline and online sellers involved with Freecharge. These would also go to Axis bank and grow its business in the country.