Freecharge, an online service that enables mobile phone users to recharge their accounts in exchange for discount coupons, has raised $3.9 million in Series A funding from Sequoia Capital, reports Mint. The investment follows a seed round that the company had raised last year from Sequoia, says the report.
Freecharge is owned by Mumbai-based Accelyst Solutions, a company founded in August 2010 by former business process outsourcing executive Kunal Shah. The company offers recharge services for most telecom operators including Vodafone, Airtel, BSNL and DOCOMO. When a user recharges his or her mobile on the site, Freecharge issues retail coupons for brands such as McDonald’s, Puma or Jet Airways. For instance, if a user recharges his mobile account for Rs 100, he will get coupons worth Rs 100 instantly via email or within seven working days at his residential address.
This is Sequoia’s second Internet-related deal so far this year. Earlier this month, the venture capital investor teamed up with Omidyar Network to invest $5.2 million in online health store HealthKart.
