This partnership will allow the company to enable more than 1 lakh routes and 2,500 bus operators on its platform
The company is currently in talks with several businesses with high-frequency transactions in sectors such as food delivery, ticketing, entertainment for exclusive partnerships over the next six months.
The deal also signifies an increasing attempt by Flipkart to maintain an edge over rival Paytm which is also expanding its online marketplace - Paytm Mall.
"Generally what we want to do is to maintain such companies as an independent unit which can keep their own culture," Jairam Sridharan, chief financial officer of Axis Bank told Moneycontrol (on-left in pic).
The Axis-Freecharge deal size at USD 60 million is significantly lower than the USD 400 million Snapdeal had paid to acquire the payments firm in 2015.
Expected to be signed on Thursday, the deal will give some breather to Gurgaon-based Snapdeal which is running low on cash. The deal will also change contours of Snapdeal's sale talks with Flipkart.
The deal is almost through and an announcement is likely to be made in the next few days, two people familiar with the development said.
Snapdeal may witness another round of layoffs which may impact 600 to 1,000 odd employees, two people privy to the development inside the company told Moneycontrol
Moneycontrol charts the growth story of Avendus Capital and how it cracked the formula of most large digital investments in India, which includes a USD 80 million round in food tech firm Swiggy, this week.
The deal, if successful will allow Bank of Baroda to expand its mobile wallet service, it launched last year and also to get access to millions of young customers FreeCharge has on its platform
While Snapdeal had lost the e-commerce race to Amazon and Flipkart, it wanted to catch-up on the wallet race, which was being dominated by Paytm
Snapdeal’s largest stakeholder SoftBank, which has for long been trying to sell its portfolio company, was initially facing stiff resistance from other early investors such as Kalaari and Nexus Venture Partners.
Paypal had earlier shown interest in investing into Freecharge, but the deal did not materialise. PayU, backed by Naspers, is rumoured to also be interested in Freecharge
Tech savvy users exploit a loophole in e-wallets but are not aware that it land them into deep trouble.
The company, which last year lost its second place in India's fiercely competitive online retail market to Amazon.com Inc, aims to become profitable in two years but faces falling cash reserves.
Seeking to calm employees rattled by reports of a cash crunch, the founders of Indian online retailer Snapdeal have gone directly to them with a string of townhall meetings in past weeks, according to sources, promising profit and brushing off takeover talk.
Even as townhalls have started at Gurgaon-based Snapdeal to soothe anxious employees, over 2,000 employees out of over 4300 have been estimated to be impacted by the company's retrenchment exercise this year. Moneycontrol digs deep to find out what led to the company to this juncture and the way ahead.
Naspers Group-backed digital payments firm PayU is likely to invest USD 250 million in the Indian business in the next five years, as the company extends focus on consumer offerings besides core products, according to a senior executive of the company.
After mobile wallets and point of sale machines, Paytm has set up QR codes at places of worship.
In a turn of events at the beleaguered e-commerce company, the fate of employees‘ future remain unclear. Here‘s a look at Snapdeal‘s numbers
According to sources, the company started the process last week and will lay off 500-600 people across Snapdeal, Vulcan (logistics) and Freecharge (digital payments business).
In May 2016, Rajan was elevated to the post of CEO from COO of the company. He had also served as the CEO of Airtel Money in past.
Launched about a year and a half ago, the company is backed by Y Combinator. It has three centres in Delhi, Chandigarh and Bengaluru.