One of India’s largest private bank, Axis Bank Ltd, has acquired FreeCharge form the sinking e-commerce giant Snapdeal for $60 million. The corporation will be obtaining hundred percent equity capital in an all-cash deal of Rs 385 crore.
“The acquisition was a strategic fit. The platform is a good quality one, and we felt the value we paid was good.“, Shikha Sharma, CEO, Axis Bank, commented.
FreeCharge will help Axis Bank to expand its digital banking facility that will further help the bank to expand its base. According to Axis Bank’s chief financial officer, Jairam Sridharan “acquiring FreeCharge will allow us to top up our services, the acquisition will help the bank double its customer base.”
FreeCharge is an online multi-recharge platform started in 2010. The company was soon acquired by the e-commerce platform, Snapdeal, in 2015 for $400 million that was the second biggest take over in the Indian e-commerce sector until then.