FreedomPop Gets Fabulous Funding!

If you are a light user of cell phone services (500 megabytes, 200 voice call and up to 500 text messages per month) and would like to enjoy them for free, explore a fresh idea called Freedompop. Need a phone? They also offer deep discounts on smartphones and tablets.

As originally reported on Fortune, this is a Los Angeles cell phone company in business since 2012 that buys the services at a deep discount from Sprint. They then pass these discounts to their customers. Steven Stokols, CEO is a seasoned startup impresario who sees a profitable future with no cell tower framework to maintain. He knows that the customer will eventually want added services and will pay for it as increased services are offered. Eventually Mr. Stokols would like to increase the free data to 800 MG or possibly to 1G.

The customers can enlarge their services by changing their plan at much lower costs than the Other Guys. Freedompop picks up the check for the mobile data, SMS and voice service making this an asset that the customer can acquire for far less than the competition. They can cherry pick services like insurance on the phone for breakage, incognito browsing or data rollover month to month. International phone numbers can be added to the phone without the Other Guys International mark up prices. This idea is catching fire as the company’s popularity is spreading by their own FreedomPop customers and that has resulted in the need for growth capital.

TechCrunch reports that FreedomPop has gotten the attention of Partech Ventures, DCM and Mangrove Capital to the tune of thirty million dollars! Naturally, the competition has been making offers to Freedompop to get their hands on it seeing that it already had acquired $49.3 million since the company’s inception. Six solid propositions were offered to acquire the company by The Otherguys: the estimated worth being beneath a squatty hundreds of millions of dollars!

Leave a Reply