MVNO looks to hit nearly 1M customers by year end
Mobile virtual network operator FreedomPop said it has scored $30 million in financing in a move to boost growth and scale operations. The company said the financing comes “following months of [merger and acquisition] speculation.”
The series B funding was provided by Partech Ventures, existing investors DCM Capital and Mangrove Capital, and a new “strategic” investor that was not part of the round’s initial funding and would be announced at a later time. FreedomPop said it plans to use the new investments to expand its domestic reach through offline retail partnerships and distribution, including the hint of a “major retail partnership in progress,” as well as international aspirations.
FreedomPop CEO Stephen Stokols said the decision to move forward with new investments instead of a possible sale was due to its expected growth opportunities, though it has not ruled out a potential sale in the future.
“We received several M&A offers, but we ultimately decided it was premature to sell on the cusp of exponential traction,” said Stokols. “Following on accelerated growth and our pending global expansion, we are confident we will create massive value within the next 12 to 24 months at which point we could revisit exit options.”
The MVNO, which said it expects to hit nearly 1 million customers by the end of this year, launched in late 2012 offering customers free mobile data services running across Clearwire’s WiMAX network. The company eventually added 3G and LTE support running across Sprint’s network, with a mix of free and inexpensive rate plans.
Earlier this year, FreedomPop launched its Premium Voice technology that is said to allow for a device to “seamlessly switch between VoIP and traditional cellular networks regardless of device type.” The service also is said to provide a higher-quality voice experience.
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