FreedomPop Turns Down Acquisition Offers and Raises $30 Million To Continue Growth
An article appearing on June 17, 2015, in Fortune, announced that FreedomPop will continue to grow and has raised $30 million to fund that growth. The startup has taken on national carriers with it’s free mobile services. While this doesn’t make national carriers happy it has consumer’s jumping to sign up with the LA-based company.
The company doesn’t own its own infrastructure but buys data, SMS and voice capacities from Sprint at wholesale prices. It offers essential services to the consumer who may then sign up for more minutes, data and services at a cost if they choose. The company estimates that about one-half of its consumer’s use the free only services while the other half buys upgrades. These upgrades are how the company makes its money.
The new Series B is funded by Partech Ventures, and already existing investors, DCM Capital, and Mangrove Capital. Before this, the company had shopped itself around negotiating with national carriers, mobile operators, cable providers and one major internet company. They won’t say who these companies were, but rumor has it that Sprint had shown interest back in November.
They received six formal offers and entered into exclusive negotiations with one company but backed out. It’s believed that the offers were in the lower 100s of millions. However, FreedomPop decided that they could continue to grow. It’s thought that they may reach one million subscribers during the upcoming third quarter.