comscore Snapdeal-owned Freecharge has a new bidder in Amazon: Report

Snapdeal-owned Freecharge has a new bidder in Amazon: Report

Amazon has reportedly offered $50-80 million to buy out Freecharge.


The impending Snapdeal sale hasn’t been short of theatrics with several performers playing cameos intermittently. We still don’t know who the star performer is though. It’s been half a year since the struggling online marketplace started looking for a buyer who could pick up its e-commerce unit (Snapdeal), its logistics arm (Vulcan Express) and its payments solution (Freecharge) which Snapdeal had acquired in 2015 for $400 million. Also Read - Asus ROG Zephyrus G14 and G15 with AMD Ryzen 4000 series chips launched in India

Also Read - Honor 9A to go on sale today on Amazon India: Check offers, price

Earlier this year it was rumoured that global payments giant PayPal was in talks to pick up a 25 percent stake in Freecharge; then there were reports that India’s leading mobile wallet Paytm had signed a “non-exclusive term sheet” to acquire Freecharge for $40-50 million. And now, the mother of all names is doing the rounds. A Bloomberg report claims that Amazon has bid for Freecharge and has offered it $50-80 million. This comes soon after reports suggested that Axis Bank had emerged as the front-runner to buy Freecharge for $60-65 million. BGR India has reached out to Freecharge for comment. ALSO READ: Snapdeal keen on Infibeam buyout while Softbank pushes for Flipkart: Report Also Read - Samsung Galaxy M31s to go on sale today on Amazon India and Samsung store: Price in India, offers and specifications

Amazon has just started operating its mobile wallet, Amazon Pay, in India after securing a license from the RBI in April. If the deal goes through, Amazon will most likely integrate Freecharge with Amazon Pay. Freecharge’s point-of-sale reach will help Amazon expand its wings in the hugely competitive digital payments market in India. Freecharge announced in June that it had crossed 500 million transactions exceeding $1.2 billion in value. ALSO READ: Amazon India to allow UPI payments within a month: Report

For Freecharge, all buyout offers so far are a significant downgrade from the $400-500 million that Snapdeal had paid to acquire it in 2015. At the time of the deal, both companies said they were forming “India’s largest m-commerce company”. It was then the biggest acquisition in the Indian startup space. However, Snapdeal’s struggles to stay afloat ended up devaluing Freecharge a great deal. The Gurgaon-based firm that had reached peak valuation of $6.5 billion in February 2016 might end up selling itself for under $1 billion.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: July 25, 2017 11:01 AM IST

new arrivals in india

Best Sellers