According to reports, popular private lending sector Axis Bank seems to have finalized a deal for buying Freecharge, which is currently owned by Snapdeal, for a whopping sum of Rs. 350-400 crores. It is believed that the deal has almost reached its final stage and an official announcement is on the way in the coming few days.
It is also quite interesting that amid this news of alleged acquisition, Axis Bank has also announced a press conference that is to be held next Thursday, on the 3rd of August to ‘’announce a strategic business initiative.’’ On the other hand, Snapdeal too is looking for selling off their e-commerce sector and has been involved in numerous discussions with rival e-commerce giant Flipkart over last few months.
Snapdeal had bought Freecharge for a sum of USD 400 million in the month of April in 2015, and this happened to be the biggest deal in the league of fledgling start-up ecosystem in entire India.
Before the news of Axis Bank buying Freecharge rolled out, there were talks that the latter was to be sold off to Paytm. However, that couldn’t work out since it was said that the Alibaba backed Paytm had offered quite a less price of just USD 15 million according to sources.
After the demonetization in India that took place from November, 2016, the usage of digital wallets quadrupled in no time, and now with Axis Bank buying Freecharge, it will gain access to around 50 million mobile wallet holders alongside approximately 200 professionals.
Experts are also waiting to see how Axis Bank deals with the integration of Freecharge, given that it already has its own digital wallet: Lime. On the other hand, this acquisition would come as a much awaited breather for Snapdeal as they will get some more time to deal with the ups and downs clouding the company.
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