FreedomPop Secures Additional Funding
For many people, their mobile phone bill is astronomical. It takes far too large of a chunk of their household income, and makes their financial state difficult. FreedomPop has an offer for you; ditch the old plan, and get a free on.
Since their start in 2012, FreedomPop has been providing bare bones mobile data and voice services at no charge. The company has been attracting a lot of attention for their innovative approach, and today, they announced that they had finished a new round of funding. This time FreedomPop managed to raise $30 million. Following the news that FreedomPop turned down multiple buyout offers, this shows how committed the mobile phone company is to their message.
Partech Vnetures took the lead on the Series B round alongside existing investors DCM Capital and Mangrove Capital. Niklas Zennstom founded FreedomPop with money from his own venture company Atomico. The company has raised $49.3 million in funds since then.
The trick to the way they operate is that FreedomPop doesn’t have any infrastructure. Instead, they buy all their data from Sprint at a wholesale rate. FreedomPop eats the losses on their mobile data, but makes up for it in other ways. The company doesn’t bundle phones in a contract, but it does sell them directly to users. Once they have a phone, the customer is given 500 MD of data, 500 text messages, and 200 minutes of voice for free each month. If the user needs more, they can purchase additional amounts at a cheap rate or subscribe to an unlimited plan.
Most of FreedomPop’s money comes in the form of add on packages for the base phone. These are sold at additional cost to the consumer. Popular examples include a roll over data plan and an option to get an international number attached to your phone.