Freecharge has decided to pour Rs 1,000 crore in its marketing segment to further expand its presence in India and largely to position its wallet services as a preferential mode of making payments.
Freecharge, bought by Snapdeal six months ago for an undisclosed amount, rolled out its own digital wallet named ‘FreeCharge Wallet’ last month. FreeCharge claims a massively speedy, ’10 seconds’ checkout through its new wallet system. You can store money into the wallet, and then later use it for purchases on FreeCharge later.
As the company does not have an open wallet license from Reserve Bank of India, it has tied up with Yes Bank to launch its wallet and Fino tech for payment bank.
FreeCharge Chief Operating Officer and Snapdeal Chief Strategy Officer, Govind Rajan stated –
FreeCharge’s mobile wallet has seen a great response from the public and we have crossed the two-million user mark… In the next 10-12 months, we will invest Rs 1,000 crore for marketing and promotional activities to drive adoption and usage of our wallet service.
The company intends to invest a major portion of this amount during festive season. Recently, FreeCharge had announced that it will adopt Aadhar as the primary KYC tool for opening and upgrading wallets. Aadhaar authentication would enhance consumers’ balance limit from Rs 10,000 to Rs 1 lakh.
FreeCharge+Snapdeal have together amassed a massive 87 Million users on their platform. Combined, these two have stored card details for over 15 Million customers with a whopping 2300 transactions happening every second.
FreeCharge has been growing at a robust pace, ever since Kunal founded the company in 2010. The startup has already raised multiple funding rounds, the most recent of them being a Series C round worth A whopping $80 Million, led by Valiant Capital.