E-retailer Snapdeal.com said on Wednesday it bought online mobile recharge firm Freecharge for an undisclosed amount in a bid to boost its reach in the fast-growing mobile transactions business.
Snapdeal, backed by SoftBank Corp, competes with Flipkart and Amazon.com Inc’s India unit in the country’s online shopping market, which is expected to be worth $102 billion by 2020, according to Morgan Stanley.
Freecharge would remain an independent platform even after the deal, which is expected to close within the next 6 months, Bahl said, without specifying how much much it paid to buy the mobile recharge firm.
With the acquisition, Snapdeal would become “the largest mobile commerce company in India,” the company said in a statement.
New Delhi-based Snapdeal is a brand controlled by Jasper Infotech Pvt. which has Japan’s SoftBank Corp. and eBay Inc. as investors. It has about 40 million users and 100,000 merchants selling everything from cellphones to cars on its site.
It hopes the acquisition of FreeCharge will give it an edge in the battle with its competitors in India, Flipkart Internet Pvt. and Amazon.com Inc.