FreeCharge receives INR 390 crore top-up from Snapdeal
The funding comes at a time when the Gurgaon-based e-commerce unicorn is reportedly raising a large equity financing round for its digital payments platform.
Founded in 2010 by Kunal Shah and Sandeep Tandon, FreeCharge is a payment wallet that allows the online facility of recharging any prepaid mobile phone, postpaid mobile, DTH, and data cards in India.
Once the current fundraising round is complete, the Gurgaon-based digital payments platform is expected to reach a step closer to achieving unicorn status in the country. It is currently being estimated that FreeCharge’s valuation will lie somewhere in between $700 million and $1 billion.
In April 2015, Snapdeal acquired Freecharge for nearly $450 Mn. Before its acquisition, FreeCharge had secured funding from Sequoia Capital, Tybourne Capital Management, and San Francisco-based fund Valiant Capital Management.
Payment platforms, such as FreeCharge and its rivals, Paytm and MobiKwik, among others, have been the largest beneficiaries of the Modi government’s decision to demonetise the country’s high-value currency notes in November, which in turn has seen a massive spike in digital payments and mobile-wallet transactions.
In May last year, FreeCharge CEO Govind Rajan had told ET that the company had targeted 7 million daily transactions by the end of fiscal 2017. The company is believed to have surpassed that target in November itself, when it recorded 8 million transactions.