Axis becomes first Indian bank to acquire digital payments company FreeCharge

India's third largest private sector bank Axis Bank on Thursday announced entering into an agreement with Jasper Infotech Private Limited to acquire 100 percent stake in FreeCharge.

Axis Bank, who is a leader in key payment modes, marks the acquisition as the first in digital payments company by a bank in India.

The bank has been driving digital acceptance and has established the second largest merchant network with over 4,33,000 POS machines.

It has also been actively participating in market leading payment innovations, through partnerships with Samsung Pay, Kochi Metro, BMTC, etc.

"The acquisition of FreeCharge re-affirms Axis Bank's determination to lead the journey of digitization of financial services. We expect FreeCharge to contribute significantly in our aspiration to serve the digital native and mobile-first young consumers of India," said MD and CEO Axis Bank, Shikha Sharma.

"The Axis FreeCharge combination is a potent one that has the potential to make a large impact on the digital payments and banking space. It is a win-win deal that allows Snapdeal to further focus on our core e-commerce business, while giving Axis some of the most agile and innovative technology capabilities in the financial services space in India," said Snapdeal co-founder and CEO, Kunal Bahl.

"We are happy that FreeCharge has a new strong owner in Axis Bank and will embark on a new journey with the Bank. The entrepreneurial team at FreeCharge brings with it immense technology and product expertise," said interim CEO of FreeCharge and Chief Strategy and Investment Officer of Snapdeal, Jason Kothari.

With more than 90 percent of transactions originating from its app, FreeCharge is at the forefront of the mobile commerce revolution. Nearly 75 percent of its users are under 30 years, with 85 percent of active users accessing their financial services from a mobile device.