FreedomPop Raises Another $50 Million for International Expansions
FreedomPop is mobile phone services and a wireless internet provider based in Los Angles, California. It was founded by Stephen Stokols the CEO, and Steve Sesar. The company is backed by DCM Capital, Mangrove Capital, Axiata, and Partech Ventures. It uses Clearwire and Sprint’s network to provide free mobile services including text, voice call, and free data. According to Engadget Reviews, FreedomPop has strong signal quality and services, which is a seriously attractive alternative to larger carriers. FreedomPop’s mission has always been ensuring that all people have access to essential and affordable communication services. With FreedomPop Nationwide Wi-Fi and its auto-connect access, there is no need for authentication pages or manual configuration via device setting.
FreedomPop is going beyond traditional business of mobile carriers by providing ways of using mobile devices free of any charges. In efforts to continue its global rollout beyond its home market and launch international products, the company has raised $50 million. These products include free hotspots in over 25 countries and SIM that will enable users to access free data and calls on their devices across multiple regions. This funding appeared just six months after the company raised $30 million with its investors such as Intel. It brings the total raised to $109 million. According to Stokols, the international expansion has been adamant; the UK market is going extremely well with conversion level of 45% after last year launching. Considering that UK was the first international market beyond U.S. in the next 24 months, the number of users in the UK is projected to go beyond 1 million while U.S has over 1 million users.
FreedomPop plan is to explore more new markets, and by June this year, the company will cover U.S, the U.K, France, Germany, Italy, Spain, Switzerland, Austria, Netherlands, Belgium, and Luxembourg. In addition, Sweden, Finland, Norway, Denmark, Ireland, Portugal, Greece, Poland, Hungary, Slovakia, Croatia, Romania, Bulgaria and the Czech Republic markets will be covered. By the end of this year, its services will extend to 40 countries including Latin America and Asia.
Primarily most MVNOs buy messages, data, and minutes from their carriers in bulk and then resell it to their customers. However, FreedomPop buys only data that it uses to offer its unique services. Rather than pre-buying in bulk, it negotiates different usage and pays only what FreedomPop customers use. Recently, FreedomPop has been working on ways of utilizing this technology directly within different carriers’ networks, thus building new service for them and in the process give FreedomPop more diverse revenue.