Govind Rajan, the CEO of FreeCharge resigned from his post after failing to raise fresh funds. Snapdeal, which purchased FreeCharge for $450 million in April 2015 has handed charge to Jason Kothari in the interim. Kothari is the current Chief Strategy and Investment Officer at Snapdeal.
Rajan took over as CEO of FreeCharge in May last year. He was previously the Chief Strategy Officer at Snapdeal.
FreeCharge has failed to attract new investors, with competition from PayTM and MobiKwik eating into its customer base. While FreeCharge managed to raise $116 million in funds till October 2016, PayTM attracted investments worth over $740 million, while MobiKwik attracted investments worth $120 million in the same period.
Demonetisation has given a huge boost to digital wallets, with the number of users increasing substantially. FreeCharge currently has a userbase of around 30 million, while PayTM caters to around 120 million people.
FreeCharge provides a gateway to pay multiple bills, right from telephone recharge to DTH, metro cards, electricity and gas. The company, however, has failed to generate new investors over the last six months, prompting Rajan to take this step.
Rajan’s exit adds to the list of high-ranking executives who have quit Snapdeal in the last three months. These include Tony Navin, head of partnerships and strategic investments; Sandeep Komaravelly, head of peer-to-peer marketplace (Shopo) and Abhishek Kumar, head of corporate development, mergers & acquisitions and investments.