Reports of Axis Bank buying FreeCharge from Snapdeal for Rs 385 crore advanced the Axis bank shares. According to reports, Snapdeal has sold 100 percent shares of Freecharge to Axis bank. This FreeCharge business acquisition would give Axis Bank access to around 52 million mobile wallets. Axis Bank will be able to access wallets holders of FreeCharge as well as approximately 160 to 190 professionals.
Axis Bank’s Freecharge acquisition from Snapdeal
India’s seventh-biggest lender by assets, Axis Bank, declared that it has approved to acquire mobile payments wallet provider FreeCharge from Snapdeal, e-Commerce company. According to reports, Snapdeal has sold FreeCharge to Axis Bank for Rs 385 crore ($60.04 million). Betting on the surging inclination towards Digital payments mode in India, Axis Bank has decided to acquire the mobile payments wallet provider FreeCharge. It was also stated by Bank official that this move will strengthen Bank’s reach as the Government policies too are driving a less-cash economy.
Axis Bank’s would benefit of FreeCharge
The deal would leapfrog Axis Bank’s digital journey by multiple years besides boosting the customer base twice the number of Axis Bank at the moment. The regulatory clearances of the acquisition is expected by the Axis Bank in two months. It was reported that once the Axis Bank completes the acquisition process, it may consider merging its wallet businesses in the near future.
A prosperous move
The current Rs 385 crore acquisition deal will proffer considerable leg room to the e-Commerce company Snapdeal. It is believed that the Snapdeal management had been struggling to raise funds for over a year. Till now, FreeCharge too is stated to have held talks with a number of industry players for financial investment or an acquisition but all in vain.
It was also reported that e-Commerce giant Amazon too was keen on acquiring FreeCharge. Amazon, despite placing a higher bid for FreeCharge lost it to Axis Bank as the Snapdeal-owned payments platform – FreeCharge, decide to go with Axis Bank’s offer. This acquisition by the Axis Bank will offer the bank better possibilities to encompass a strong play in the consumer-focused digital payments space. A nonbinding agreement had also been signed with the Alibaba-backed Paytm by Snapdeal.
Source: Times of India