How Snapdeal gains by acquiring Freecharge

The e-commerce company hopes to boost its valuation as well as leverage the growing number of transactions being carried out on mobile phones

"Invest ahead of time" is a mantra that Snapdeal strongly believes in. Accordingly, the New Delhi-based company closed a big acquisition recently with a sharp focus on mobile commerce. Snapdeal acquired Freecharge in a cash and stock deal estimated to be worth $450 million. Freecharge allows users to recharge their mobile phones or Internet connections and get coupons as reward for using its services. The deal reflects the inspiration Snapdeal founders (Kunal Bahl and Rohit Bansal) saw in the Alibaba model to build an entire e-commerce ecosystem. Alibaba, in China, has built ...