Corporate Valuations - News The declining valuation of Snapdeal-led Freecharge : news

The declining valuation of Snapdeal-led Freecharge

Date: 25-April-2017

Very few startups in the Indian ecosystem can claim to have a devaluation as steep as that of Snapdeal owned Freecharge, despite having attractive suitors in the market. The company which was sold at a valuation of over USD 400 million to Snapdeal in 2015, is now on the block in the market for as low a tenth of its acquisition price. According to a report in The Economic Times, Flipkart may bid for Freecharge for a sale price ranging between USD 40-75 million.This happens at a time when Snapdeal itself is expected to close a merger deal with rival Flipkart. Started in 2010, Freecharge has had multiple suitors in past few months including rivals Paytm and Naspers-backed PayU. In August 2016, when Snapdeal was planning to sell a stake in Freecharge, it pegged the valuation of its payment unit at USD 1.2 billion.

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