The funds will be used to add new products, add merchants who can use Freecharge to target consumers, and to advertise the service to consumers, said a press statement. The company received a seed investment from Sequoia in 2011, followed by a Series A more recently.

Freecharge.in has developed a innovative business model by introducing the concept of ‘free recharge’. It offers savings to the consumer in the form of coupons from 50 plus major merchants, equal to the value of recharge. Since its launch less than 18 months ago, Freecharge.in’s customer base has grown to 1.5 million. The company currently has tens of thousands of transactions/day on its website, making it one of the highest transacting websites in India.

“There are over 600mm pre-paid mobile phone users in India, and we’re offering them a convenient and easy way to recharge their phones or pay their DTH bills online, and we offer them discounts of equal value at a merchant of their choice,” said Kunal Shah, co-founder & CEO, Accelyst Solutions Pvt. Ltd., the parent company to Freecharge.in.

“At our end, we are excited about the intelligence we are building around the consumer’s preferences and the ability to target better offers to them, and driving hundreds of thousands of transactions to our merchant partners every month,” he added.