E-commerce giant Snapdeal today acquired online mobile recharge firm Freecharge in India’s biggest M&A. The exact amount of the deal is not disclosed yet, but it could be over $400 million in cash and stock, as per sources.
“Together we represent the largest m-commerce company in the country now,” said Kunal Bahl, CEO & Co-founder of Snapdeal.
According to Snapdeal, 1 million mobile transactions would take place daily once the companies are combined. About 75 percent of all Snapdeal transactions now are through mobile users. Also with the acquisition, Snapdeal would become “the largest mobile commerce company in India.
— Snapdeal.com (@snapdeal) April 8, 2015
— Kunal Bahl (@1kunalbahl) April 8, 2015
Indian starup system recently has seen tremendous growth boosted up with lots of acquisition. Solely 2014 has seen $2 billion of investments. According to a report by Boston Consulting Group and Retailers Association of India, Indian retail industry stands at a mammoth of $600 billion and expected to touch $1 trillion by 2020 with ecommerce mounting upto $60 billion. All in all we can expect greener days ahead for startup culture.