FreedomPop to tap new funding, Axiata’s network to launch services across Southeast Asia
Mobile virtual network operator FreedomPop continues to rake in the funds, announcing an additional $10 million, and plans for expansion into Southeast Asia.
The company said a portion of its latest funding came from telecom operator Axiata Group, which serves more than 230 million customers across Malaysia, Indonesia, India, Bangladesh, Singapore, Cambodia and Sri Lanka. FreedomPop said it plans to use its technology, business model and recent funding along with Axiata’s network, operational capabilities and local knowledge to offer a “free mobile service and simple plans to millions of mobile users.”
FreedomPop also noted that the move expands its operational model from a simple wholesale relationship like it currently has in the U.S. with Sprint, to a “more strategic commercial partnership.” The company added that it is in discussions with “multiple major global carriers for strategic partnerships” across other markets.
FreedomPop announced last month that it scored $30 million in series B funding from new investor Partech Ventures and existing investors DCM Capital and Mangrove Capital. The company also hinted at a new “strategic” investor that was not part of the round’s initial funding, which turned out to be Axiata.
At that time, 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.
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