The deal is said to be 30% in cash and 70% in stock. The transaction was done at a $5 billion valuation for Snapdeal.Snapdeal co-founder and CEO Kunal Bahl said here on Wednesday that the joint entity would create the country's largest mobile commerce platform with over 40 million customers. About half of that comes from FreeCharge.
Flipkart, with which Snapdeal is in fierce competition, has 30 million registered users. Flipkart had acquired online clothing firm Myntra for over $330 million last year.
FreeCharge gives Snapdeal access to a much younger audience. While most Snapdeal customers are in the 25 to 35-years age group, most FreeCharge customers are 18 to 25 years old. The venture, which started in 2010 and whose core strength is mobile phone recharges, is popular with the youth because the segment tends to use small pre-paid packages and FreeCharge offers free coupons of various kinds with every recharge. Bahl said Snapdeal and FreeCharge would be able to cross-sell services on each other's platforms.