Axis Bank to buy mobile wallet Freecharge for $60m
Axis Bank has agreed to acquire mobile payments firm Freecharge for nearly $60m in an all cash deal from Snapdeal.
The deal value is considerably lower than the $400m Snapdeal had paid to acquire Freecharge two years ago.
The deal will give Axis Bank access to about 50 million registered mobile wallet users as well as patented technologies.
Apart from this, Axis Bank will absorb the 200-250 odd staff of the Freecharge. The deal is subject to regulatory approval from the Reserve Bank of India (RBI).
In response to the developments, Axis Bank chief executive Shikha Sharma said: “The acquisition of FreeCharge re-affirms Axis Bank’s determination to lead the journey of digitisation of financial services. We expect FreeCharge to contribute significantly in our aspiration to serve the digital native and mobile-first young consumers of India.”
Snapdeal co-founder and CEO Kunal Bahl said: “The Axis-FreeCharge combination is a potent one that has the potential to make a large impact on the digital payments and banking space. It is a win-win deal that allows Snapdeal to further focus on our core e-commerce business, while giving Axis some of the most agile and innovative technology capabilities in the financial services space in India.”