Almost done with 2017 and there has been a remarkable movement around mergers and acquisitions, especially in the Indian startup juncture where it seems the aforementioned processes are really a blast. Earlier this year, and in the past, some of the country’s biggest startups such as Freshworks, Paytm and Flipkart made important acquisitions in hopes of expanding their presence, capturing a much broader and larger market share and withstand their competitors. As previously described by Suzzanne Uhland, both mergers and acquisitions can really get to be a dreary process when carried out wrong. In fact, many companies fail at both things simply because they use the same approach they used in the past, or because they lack the knowledge and the experience required to take care of all the aspects involved.
Thus, given the staggering amount of both mergers, acquisitions—and even exits—, here is a compilation of the biggest acquisitions made by Indian businesses and startups so far:
When Snapdeal acquired Freecharge
When eCommerce startup Snapdeal decided to expand its frontiers it set out to find the perfect opportunity. In April 2015, the company ended up acquiring mobile recharge service Freechage. The operation reached a staggering $400 million deal, making it the most remarkable acquisition in the history of the country’s internet business. When the operation took place, the buyers had raised around $1 billion in funding while the acquired company had a total funding of around $115 million. Freecharge remained operation as a separate business following the operation which allowed the buyers to come up with new ways to expand their business operation scope. After some time, Snapdeal finally decided to sell the company to Axis Bank for nearly $60 million.
When Flipkart acquired Myntra
There was a rumor about India’s eCommerce startup, Flipkart, acquiring its competitor Myntra. Such rumor created a lot of speculation, and finally the former ended up acquiring Myntra for around $330 million. Such move took place in light of American giant, Amazon, trying to expand its business in the country. As a matter of fact, neither party really confirmed the exact value of the operation; however, local reports assert the deal was set around $300 million. As in the previous example, the acquired company remained operation as an independent business following the deal and even set out to expand its business locally in India.
When Ola acquired TaxiForSure
Ola is one of Indian’s biggest and largest ride-hailing service. Two years ago, the company acquired a much small, yet valuable, company known as TaxiForSure for around $200 million. The deal allowed Ola to expand its business and achieve considerable presence in India as they added almost 14,000-plus fleet (previously owned by TFS) to their own across 46 cities onto its very own platform; however, a year later, Ola ended up shutting down TaxiForSure and fired almost 1,000 collaborators. Although the operation had a very sad end, it is a depiction of the risks companies take when they decide to take their businesses one step further.
When PayU acquired Citrus Pay
PayU is one of the world’s largest payment service provider. In September 2016, the company acquired Indian tech company Citrus Pay for almost $130 according to local reports. The operation was initially considered as the largest cash-based deal in the Indian tech industry. Citrus Pay is a prepaid payment system and payment gateway that, at the moment, had signed more than 10,000 different companies handling a staggering amount close to 11 million transactions per month. The deal, as in the vast majority of acquisitions, allowed PayU to expand its frontiers reaching nearly more than 30 million and achieve a tremendously remarkable growth rate in India.
When Myntra acquired Jabong
Remember when Flipkart acquired Myntra and the latter remained operational as an independent entity following the deal? Well, soon after it was acquired by Flipkart, Myntra acquired online fashion portal Jabong—which in spite of having raised a staggering $240 million in funding was actually going through a tough and severe cash situation when it was acquired—. The deal ended up helping Jabong get out from their difficulties, and allowed Flipkart to consolidate its fashion and apparel business despite having American giant Amazon behind its back.
When Zomato acquired Urbanspoon
Two years ago, startup and restaurant search company Zomato acquired American rival Urbanspoon for nearly $50 million, in what was deemed as one of the biggest overseas operations by an Indian company. The acquisition represented Zomato’s first adventure in a foreign market, expanding its operation to a total of 22 countries. Zomato had already been considering play further in the market of mergers and acquisitions two years ago, in fact, during that time, the company went on to make important investments in the domestic delivery markets, acquiring several delivery service companies such as Grab and Picking, thusly strengthening its own delivery service.
* Featured Image courtesy of Pixabay at Pexels.com