WHY AXIS BANK BOUGHT FREECHARGE ?


Axis Bank Ltd -India's third largest private sector lender is nearing a deal to buy digital payments platform Freecharge for Rs350-400 crore in cash. Axis Bank and Freecharge are likely to announce the deal this week.

Snapdeal bought Freecharge for $400 million in April 2015 what was then the largest start-up deal in India. The current transaction will offer significant legroom to the Snapdeal management which has struggled to raise funds for over a year.

DEAL SIZE
Rs.350-400 crore in cash

WHY AXIS BANK BOUGHT FREECHARGE ?
By buying Freecharge, Axis Bank will get a popular digital payments brand as well as access to high-quality technology that traditional companies typically struggle to build compared with internet start-ups.

WHAT STRATEGIC REASON MADE AXIS BANK TO BUY FREECHARGE?
Digital payments in India are surging. Government policies are driving a less-cash economy

FREECHARGE TIMELINE
SEP 2013: Raised $33 Million
FEB 2015: Raised $80 Million
APRIL 2015:  Sold to SNAPDEAL
JULY 2017 : SNAPDEAL sells to AXIS Bank

BIG TAKEWAY FROM FREECHARGE STORY 
The big takeaway from the Snapdeal-Freecharge situation is the fact that the consumer internet market is growing very slowly. This is not China. Just because everyone has internet access does not mean the internet economy is growing,” said Rutvik Doshi

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