Tag: freecharge

  • Sandeep Tandon: A Technology Entrepreneur/Investor and Co-founder of FreeCharge

    Sandeep Tandon is a technology entrepreneur, investor, and mentor for the startups and entrepreneurs of today. Tandon is widely recognized as the Co-founder of one of India’s first mobile payment platforms FreeCharge, along with Kunal Shah, which was sold to Snapdeal in March 2015 and was eventually acquired by Axis Bank in 2017. He currently serves as the Managing Director of Tandon Group, a technology catalyst that owns numerous businesses by providing resources to startup companies in India and North America, along with being a Board Member and Executive Chairman of a number of other companies.

    Tandon is an active Angel Investor and aids as a mentor to several technology startups. He has served the technology industry for more than 20 years now. He holds a net worth of over Rs.11.5 crore, as of 30 September 2020.

    Sandeep Tandon- Biography  

    Name Sandeep Tandon
    Born 17 May, 1969
    Birthplace Mumbai, Maharashtra, India
    Age 52 (2021)
    Nationality Indian
    Education University of Southern California
    Profession Entrepreneur, Venture Capitalist, Investor
    Position Co-founder, FreeCharge , Board Member, CRED
    Net worth Rs 11.5 crore ( 30 September 2020 )

    Sandeep Tandon- Early Life
    Sandeep Tandon- Career
    Sandeep Tandon- Personal Life
    Sandeep Tandon- Professional Life
    Sandeep Tandon- FreeCharge
    Sandeep Tandon- Tandon Group
    Sandeep Tandon- Board of Director
    Sandeep Tandon- Angel Investor

    Sandeep Tandon- Early Life

    Sandeep Tandon & Kunal Shah | FreeCharge Founders
    Sandeep Tandon & Kunal Shah | FreeCharge Founders

    Sandeep Tandon was born and brought up in Mumbai, Maharashtra, India. His career graph ran across California and Mumbai. After completing his graduation, Tandon initially started with a Los Angeles startup firm, which he eventually resigned from in order to set up his own accounts payable company.

    Sandeep Tandon- Career

    Sandeep Tandon completed his formal education from Bombay Scottish. He further pursued the Bachelors and Masters of Science in Electrical Engineering from the University of Southern California.

    He has a connection with Harvard University, where he served as the Owner President Manager- YPO Presidents Seminar and studied Business Administration and Management (2008 to 2017).

    Sandeep Tandon- Personal Life

    Sandeep Tandon currently resides in Mumbai with his family, and frequently mentors future leaders.


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    Sandeep Tandon- Professional Life

    After completing his education, Sandeep worked as an application engineer for a Los Angeles startup. Soon, he left the startup to launch his own accounts payable company, IQBackOffice. However, he sold his company in the year 2000 and then decided to return to India to work for Celetronix.

    He examined the operations of Celetronix India until 2006 when it was sold to Jabil Circuits. He eventually served as the Chairman of the Electronics Software Export Promotion Council (ESC). Moreover, he is also a Member of Young President Organisation (Mumbai Chapter). In 2010, he co-founded FreeCharge, which became India’s fastest-growing mobile payment app. FreeCharge initially was started as an Indian financial services platform that enabled the users to pay their phone bills and other utility bills from their mobile devices and was gradually transformed into an eCommerce platform, here Tandon had a huge contribution for sure.

    After the acquisition of FreeCharge, Sandeep Tandon served as the Non-Executive Chairman of AAVAS Financiers since 27 July 2017. FreeCharge, which was built by Sandeep Tandon and CRED Founder, Kunal Shah, was sold to Snapdeal for a whopping $400 mn in 2015, which is easily one of the largest deals to date in the consumer internet space. This utility bill payment company was again acquired by Axis Bank on July 27, 2017, in a deal worth $60 mn.

    He is currently serving several key leadership designations at once. He is presently an Executive Board Member at Infinx Healthcare, a software that provides patient access and revenue cycle management for healthcare providers; the Executive Chairman of Syrma Technology, an electronics manufacturing service provider. He is also a Member of the Board of Advisors at USC Viterbi School of Engineering, IIFL Investment Managers, and Iron Pillar. Along with this, Tandon has also the Chairman Of The Board at Aavas Financiers Ltd and an investing partner of Whiteboard Capital since January 2018.

    He is the Managing Director at Tandon Group, through which he examines a bunch of companies and works as an Angel Investor providing funding for startup ventures. Besides, Tandon is still serving as a Board Member at CRED.  


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    Sandeep Tandon- FreeCharge

    FreeCharge Logo

    Sandeep Tandon co-founded FreeCharge in August 2010 with Kunal Shah. The company was headquartered in Gurugram, India. The users having pre-paid phones can purchase minutes through the FreeCharge app or website. It basically initiated the transformation of purchasing minutes from their own device instead of buying minutes from the store.

    He also co-founded Accelyst Solutions Private Limited. FreeCharge is founded by its parent company, Accelyst Solutions, where Sandeep has been serving as the Chief Business Officer since 1 September 2015. The company offers a varied range of online recharge services to prepaid mobile, DTH, and data card operators.

    Tandon continued to transform FreeCharge into an e-commerce venture and it operates in India. However, the company was acquired by Snapdeal in India’s largest M&A internet deal in March 2015.

    Founder of Freecharge at Tech Sparks

    Sandeep Tandon- Tandon Group

    Sandeep as the Managing Director examines the operations of Tandon Technology Ventures (Tandon Group). Through his venture, he oversees the strategy to fund startup companies as an Angel Investor. The company was founded in 1978 and is headquartered in Mumbai and Silicon Valley.

    Subsidiaries of Tandon Group
    Syrma Technology Private Limited
    TIS International (USA)
    TIS-BPO
    Tancom Electronics Private Limited
    Tandon Information Solutions Private Limited
    Tovya Automation Private Limited
    Tandon Advance Devices Private Limited

    Sandeep Tandon- Board of Director

    Sandeep serves as the Member of the Board of Directors at various companies. He is a Member of the Board of Advisors at USC Viterbi School of Engineering since March 2014.

    He is also a Member of the Board of Advisors of a Seed fund, IIFL Investment Managers, and Iron Pillar since January 2017. He became the Member Board of Directors at CRED in October 2018 and is presently still aligned with the firm.

    Sandeep Tandon- Angel Investor

    Sandeep has made 21 investments to date. His investment in the Seed Round of indiagold is the most recent one that came in on February 27, 2021.

    He invested in an Angel Round- Genius Teacher on 19 October 2020 followed by another investment on February 25, 2021, after which came the investment in indiagold. He has raised funding of $2 million for Genius Teacher. The same day, he raised $6 million in seed funding for a venture named Dukaan.

    He has raised $10 million for Atomberg Technology on 4 September 2019. Another organization, Progcap received funding of $5 million on 31 July 2019.

    On 6 June 2017, Spinny got funding of $1 million. Unacademy received Series A funding of $4.5 million on 13 January 2017. Pocket Aces was bestowed with a funding of $3 million on 15 December 2016. Bharat Bazaar was funded as well on 4 October 2016.

    Here’s a look at some of the recent investments made by Sandeep Tandon:

    Investment Date Name of the Company Name of the Funding Rounds
    February 27, 2021 indiagold Seed Round
    February 25, 2021 Raise Financial Services Seed Round
    October 19, 2020 Genius Teacher Angel Round
    October 19, 2020 Dukaan Seed Round
    September 4, 2019 Atomberg Technology Series A
    July 31, 2019 Progcap Series A
    June 6, 2017 Spinny Seed Round
    January 13, 2017 Unacademy Series A
    December 15, 2016 Pocket Aces Series A
    October 14, 2016 Bharat Bazaar Seed Round

    Sandeep Tandon- FAQs

    What is FreeCharge app?

    FreeCharge is one of India’s leading payments app. Consumers can use it for making postpaid, prepaid, metro recharge, DTH, and other utility payments across the country.

    Is FreeCharge Indian app?

    Yes, it’s an Indian app.

    Is FreeCharge safe?

    Yes, Freecharge is quite safe to use. This online recharge and bill payments platform is now owned by Axis Bank.

    What is Sandeep Tandon’s Net Worth?

    Sandeep Tandon had a net worth of Rs 11.5 Crore when estimated in 2020.

  • Freecharge Business Model | How Freecharge makes Money?

    Are you interested in gathering all the information about the business model of Freecharge? If yes, then here we have something that can help you out.  In this piece of writing we will walk you through the journey of Freecharge.

    Freecharge is an ecommerce website that has revolutionized the way people do business. It is the name that appears in everyone’s mind when somebody talks about doing phone recharge. It is one of the successful companies that has gained a million user base in its starting year. Cash shortages have punctuated Freecharge’s path, shifting leadership, from conquering the Indian market via mobile recharges to clinching the most significant purchase ever in the country’s startup community.

    We all know about the Snapdeal Acquisition. Right? It was one of the biggest purchase made up in the startup community.

    Axis Bank has purchased Freecharge from its parent firm Snapdeal for $60 million in the most recent development.

    Freecharge- About
    Freecharge- Business Model
    How Freecharge earns Money?
    Freecharge- Marketing Strategy
    Conclusion
    FAQs

    Freecharge- About

    Technical entrepreneurs- Sandeep Tandon and Kunal Shah established Freecharge, which was formerly known as Paisaback. Paisaback is like Groupon, a leading company in the United States that deals with promotional offerings such as rewards points, discounts, and vouchers. They began their business in Bombay. After discovering that a mobile phone retailer was deriving all of its revenues from the money generated by its prepaid client base, the company’s partners came up with the concept of Freecharge.

    Tandon and Shah eventually left Paisaback and launched Freecharge in August 2010. This website’s first service was mobile phone recharging. They quickly expanded its transaction verticals, including postpaid cell phone bills, DTH, data packages, and utility bills such as gas, water, electricity, and telephone bills.

    Soon after, they start handing out discount vouchers for popular food and shopping locations, equal to the recharge price. The site has 1.5 million customers and 10,000 sales daily thanks to partners including McDonald’s, Puma, Domino’s, Cafe Coffee Day, Crossword, Croma, and numerous e-commerce sites.

    Freecharge has almost twelve million subscribers and five million smartphone app downloads, according to the latest survey. It’s one of the greatest rates of growth in the recharging sector. Freecharge has partnered with numerous commercial websites such as MakeMyTrip, Myntra, and Amazon. If a user transacts on these sites using Freecharge, they get rewarded with Freecharge Credits.

    Freecharge claims to have a transaction time of 10 seconds and a success percentage of 99 percent. It has a 70% customer retention rate and a monthly use frequency of more than five times each user.

    founder of freecharge- Kunal Shah 

    Freecharge- Business Model

    Now comes the section where we are going to put light on the business model of Freecharge. It depends on two things which are direct recharge or online banking, and the second is a brand advertisement. One can access their service via a website or mobile app. When customers utilize their services, they are rewarded with money for shopping vouchers for major stores, restaurants, and cab services, making it a nearly free recharge. It operates in the same way as Freecharge’s large-scale advertising does, and the voucher owner receives more visits than any local news media, so it’s not a waste of resources for them.

    Now talking about the second source, which is a brand advertisement. For this particular, Freecharge has made tie-ups with several brands such as Dominos, Puma, Croma, Shoppers stops, and much more. When you recharge, you will get  rewards or discount vouchers for local shops. Premium vouchers can also be obtained by paying a small fee. Ultimately, your recharge gets topped up with deals equivalent to the recharge amount, thus rendering it accessible. So it is a win-win case for both other brands as well as Freecharge. Freecharge creates customers for other brands, and customers are happy with Freecharge because they are getting free vouchers.

    How Freecharge earns Money?

    Now the mystery must be sprouting in your head, how Freecharge is making money. Freecharge collects the email addresses of the users. They continue to post offerings to keep you connected to their family. They will also alert you if the membership has not been renewed. When is the time to recharge as they have your contact information stored. Promotions and discount coupons are delivered to this email. Freecharge has also formed partnerships with several banks, which give discounts for utilizing their products.

    They earn money from two sources.

    1. Service Providers – Freecharge profits similarly as the local shop gets some commission from telecom operators by offering recharge services for the company. Still, since it serves a far more extensive consumer base, its revenues are correspondingly higher. There are around 10 million users on the platform, so their revenue is comparatively high and the most significant source of income for the company.

    2. Coupons from Various Companies – This choice may appear counterintuitive at first, but it becomes apparent after you grasp the business aspect. Companies pay Freecharge to have their discounts shown on the portal, which you may access for free and for a nominal fee. Now the question must be why corporations would enable individuals to buy their items using coupons. Still, the entire couponing process is a marketing technique used by a company to increase sales.

    Freecharge- Marketing Strategy

    Freecharge has a long list of lucrative and fantastic items to its credit, and it has run several promotional campaigns to establish itself as a household brand. Its business approach is based on creative concepts. In India, television is a popular advertising medium with a large audience. Freecharge utilized this electronic media to begin its nationwide marketing. Coupons have been a critical difference for Freecharge since it offers unique alternatives that aren’t available elsewhere.

    Because its clients are its brand ambassadors, the firm also depends heavily on word-of-mouth advertising. Freecharge has used social media platforms like YouTube as an advertising tool to attract internet users and loyal clients.

    Conclusion

    There you go! Now you know all about the business model of Freecharge. It is indeed one of the successful startups of India who had acquired the largest M&A deal in India’s startup ecosystem. From the very beginning, Freecharge knew whom they were going to target. The millennials and the youth are the influential markets for the company because these are the people who spend half of the time on the phone. That’s why it became so much popular in a short period.

    The Axis bank acquisition of Freecharge is hoped to be best for both companies.

    FAQs

    Who acquired Freecharge?

    Axis bank has acquired Freecharge.

    Is Freecharge Indian?

    Yes, Freecharge is digital payment app in India, with headquarters in Mumbai.

    How did Freecharge make money?

    They earn money from two sources :

    • Commission from service providers.
    • Couponing process

    Who are the direct competitors of Freecharge?

    • Paytm
    • MobiKwik
    • PhonePe
  • Acquisitions of Indian Startups by its Competitor

    What do you mean by the term Acquisitions? On what metrics the company acquires other companies? Is acquiring other competitor companies legal? Which are some of the latest acquired companies? Interesting isn’t it?

    According to Investopedia, the definition of Acquisitions is as follows-

    An acquisition is when one company purchases most or all of another company’s shares to gain control of that company.

    Acquisitions, which are very common in business, may occur with the target company’s approval, or in spite of its disapproval. Some of the parameters needed to be checked before acquiring a company. These metrics should be followed before evaluating an acquisition- Financial value of the company, Asset value of the company, Possible resale value of the company, and its assets.

    Read this article to know more about the common questions related to startup acquisitions. We have listed down some of the latest and deal-breaking acquisitions in the Indian Startup Ecosystem.

    Top Indian Startup Acquisitions
    1. Walmart acquires Flipkart
    2. Snapdeal acquires FreeCharge
    3. Tata motors acquire Jaguar and Land Rover
    4. Flipkart acquires Myntra
    5. Ola acquires TaxiForSure
    6. Zomato acquires Urbanspoon
    7. MakeMyTrip acquires MyGola
    FAQ’s
    Conclusion

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    Top Indian Startup Acquisitions

    India, the 3rd largest startup hub in the world is home to many new startups. Every other day we hear about new startups coming up in India. With all these new startups coming up every other day, the competition increases. This leads to acquisitions. The strong prey on the weak or the potential competitor. Recently, the Walmart-Flipkart merger in mid-2018 is the first breakthrough in the minds of many. From a country’s M&As (mergers & acquisitions) viewpoint, this acquisition has been a milestone and still has an ecosystem impact. If the sale was the horse rider or the fact that the ecosystem was more M&A safeguarded, the overall fusions and acquisitions this year have decreased.

    As we approach the mid of 2021, there are sudden reports of potential acquisitions and exits in the Indian startup ecosystem. Some of India’s largest startups have made many acquisitions to grow their footprint, grab a larger market share or endure growing competition from competitors, including Tata Motors, Zomato, Snapdeal, Flipkart, and others.

    1. Walmart acquires Flipkart

    Flipkart and Walmart Logo
    Flipkart and Walmart Logo

    With the American retail giant investing 16 billion worth, Walmart‘s takeover of Flipkart is the first-ever in India. But this acquisition was not the country’s first major takeover we saw. Here is a list of some of India’s major fusions and acquisitions. In 2018, Walmart purchased Flipkart 77 percent for $16 billion. This makes it India’s largest acquisition.

    Walmart | American Multinational Retail Company | Company Profile |
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    2. Snapdeal acquires FreeCharge

    Snapdeal and FreeCharge Logo
    Snapdeal and FreeCharge Logo

    In April 2015, Snapdeal acquired the Freecharge smartphone recharge service. It was valued at $400 million for the cash plus equity deal and the largest takeover in Indian internet business history. The partnership brought in about approx. $1.1 billion in financing from Snapdeal, and $120 million from Freecharge in particular. Freecharge remained a separate company after the takeover, allowing Snapdeal to grow its digital trading ecosystem. Snapdeal has had several major acquisitions last year: In the center of this move, China’s giant Alibaba took an interest in Indian eCommerce in Snapdeal.

    Sandeep Tandon | Co-founder of FreeCharge | Managing Director at Tandon Group |
    Sandeep Tandon is a Technology Entrepreneur, Investor and a Mentor. He is the Co-founder at one of India’s first mobile payment platform, FreeCharge[/freecharge-best-deals-cashbacks/]. He also serves as the Managing Director of Tandon Group, a technology catalyst that owns numerous businesses by …

    3. Tata motors acquire Jaguar and Land Rover

    Tata Motors, Jaguar and Land Rover Logo
    Tata Motors, Jaguar and Land Rover Logo

    As announced on March 26th, Tata Motors purchased the Ford Motor Company’s Jaguar Land Rover companies from the company for a net amount of $2.3 billion. In the Jaguar Land Rover pension plans, Ford contributed around US$600 million. Mr. Ratan N. Tata, Chief Operating Officer of the Tata Sons and the Chief Financial Officer of the Ford Motor Group, Don Leclair and Mr. Lewis Booth, Executive Vice-Chairman of the Ford of Europe Motor Company and Mr. La Jaguar La Tata Motors attended this ceremony at the Gaydon headquarters at the Jaguar Land Rover.

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    4. Flipkart acquires Myntra

    Flipkart and Myntra Logo
    Flipkart and Myntra Logo

    In May 2014, after months of rumors, India’s leading e-commerce company Flipkart acquired a trendy rival Myntra, a development that had to do with the increasing presence of Amazon in India. None of the parties verified the acquisition’s exact valuation, but sources placed the cash and equity transaction between 300 and 330 million dollars.

    Flipkart launched as a supermarket in 2007, offering apparel and electronics in all categories. It also offers furnishings and white products. The change is anticipated to help Flipkart reinforce its clothes collection and contend with Amazon and Snapdeal more vigorously. With his co-founder and CEO Mukesh Bansal joining Flipkart and running the apparel company, Myntra will continue to run as an autonomous entity.

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    5. Ola acquires TaxiForSure

    Ola and TaxiForSure Logo
    Ola and TaxiForSure Logo

    Ola, one of India’s largest ride-hailing operation, acquired TaxiForSure for $200 million as a smaller, but value-centric, cash and equity acquisition in March 2015. Ola’s footprint in the country has been extended by adding TaxiForSure’s 15,000+ fleet onto its network across 47 cities. In October 2014, Ola raised SoftBank $210 million in addition to the 41,5 million dollars it raised earlier, adding over a quarter-billion dollars in overall financing in 2014. When TaxiForSure was acquired, it had 15,000 vehicles in 47 cities on our network a few months after the launch of Ola in January 2011. In India, it has recently been an upright battle between Uber and Ola, who have joined Didi Kuaidi, GrabTaxi, and Lyft globally.

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    6. Zomato acquires Urbanspoon

    Zomato and Urbanspoon Logo
    Zomato and Urbanspoon Logo

    In January 2015, Zomato purchased a 50 million dollar US competitor, Urbanspoon, at what was one of the highest offshore transactions for an Indian startup. The purchase marked Zomato‘s visit to the US, Canada which Australia, and took over 22 countries around the world. The takeover signals the entrance of Zomato in the USA. This is the sixth and largest purchase of Zomato in the last six months. The purchase will rise from 300,000 to 1.000,000 restaurants globally more than three times the inventory of Zomato’s Restaurant. In the coming months, Urbanspoon will pass onto Zomato.com, and the Zomato software will be used by all Urbanspoon app users. Zomato increased the overall amount of venture funds raised by the firm to $113 million from Sequoia, Knowledge Edge, and Vy Capital in November.

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    7. MakeMyTrip acquires MyGola

    MakeMyTrip and Mygola Logo
    MakeMyTrip and Mygola Logo

    A leader among India’s travel reservation sides was the Nasdaq-listed MakeMyTrip, a pioneer in Indian tourism reservation – which was funded by investors such as Helion Venture Partner, 500 Partners, and Blumberg Capital at the last minute. Mygola, founded by IIT Mumbai in 2009, says travelers can create customs journeys in 15 minutes by using Bapna and Prateek Sharma. It has up to 5000 installations in the Google Playstore on Android and is present in 16 cities worldwide. The acquisition happens as Indian travel is heating up, as an investment in 2015, for the most part, early-stage, has crossed 71 million dollars, compared to 55 million dollars in all of 2014 (about 440 crores).

    MakeMyTrip Success Story – Founder | Business Model | Revenue
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    FAQ’s

    Let’s discuss some of the frequently asked questions (FAQ’s)  related to startup ecosystem..

    What do you mean by the term Acquisitions?

    An acquisition is when one company purchases most or all of another company’s shares to gain control of that company. Acquisitions, which are very common in business, may occur with the target company’s approval, or in spite of its disapproval.

    On what metrics the company acquires other companies?

    These metrics should be followed before evaluating an acquisition- Financial value of the company, Asset value of the company, Possible resale value of the company, and its assets.

    Acquisitions, which are very common in business, may occur with the target company’s approval, or in spite of its disapproval.

    Which are some of the latest acquired companies?

    Larsen and Toubro Ltd (L&T) gained a controlling interest in Mindtree Ltd, raising its stake to 60% in the Bengaluru-based company on 27 June 2019 and successfully concluding India’s first hostile takeover of an IT company.

    How do startups get acquired?

    The startups that last usually get acquired for their market share before they hit those numbers. Intellectual property is the most common way to build a defensible product. In fact, many startups with a proprietary product get acquired before they even take their solution to the market.

    How long does a startup acquisition take?

    Corporate mergers and acquisitions can vary considerably in the time they take to be completed. This length of time may span from six months to several years. There are a number of individual steps that need to be completed successfully by two public companies before they are legally combined into a single entity.

    Conclusion

    Startup acquisitions happened in the past and will keep happening in the future. If there is a slight possibility that the competitor can be a problem in a long run then acquisitions will happen for sure. Investors will keep looking for further IPOs, new firms and acquisitions from publicly traded companies in the subsequent year as the number of acquisitions, and their scale in India is growing. Up until now, they have relied primarily on other startup acquisitions. As the Indian startup ecosystem continues to expand and draw more foreign interest, the value of M&A transactions in the country can only be projected to rise in the coming years accordingly.

    The Rapid Growth Of Foodtech Services In India
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