FreedomPop provides free bundles of data, voice and text (and related hardware such as a global hotspot and low-cost SIMs) while upselling extra services. It operates a non-traditional MVNO model—buying only data, offering voice via VoIP, negotiating usage tiers and integrating its technology directly within carriers' networks. The company is expanding internationally: the UK launch is performing strongly (45% conversion so far) and SIMs there have sold out, with a projection of 1 million UK users in 18–24 months. FreedomPop's global hotspot initially aggregates cellular capacity in 25 countries for free use and will expand to 40 countries by year-end, and a $10 Europe SIM is being offered. The company reports just over 1 million users in total today and is pursuing rollout into additional markets and carrier partnerships. Financially, it recently raised $50M and says its valuation is significantly higher than its prior round—below $1 billion but approaching it—bringing total funding to $109M. FreedomPop is a Los Angeles-based provider of free broadband wireless service and phone service. On November 3, 2015, the company announced it received an investment from Intel Capital. Intel Capital made the investment as part of a set of investments announced at the Intel Capital Global Summit in San Diego. The company did not disclose the size or terms of the investment. No operating metrics, revenue figures, or future plans were disclosed in the announcement. Intel also showcased Two Bit Circus at the summit; the article did not link that company to the FreedomPop investment. FreedomPop is a U.S. wireless carrier startup that offers a free tier of voice and data services alongside paid extras. It sources wholesale data and uses backend technology (including VoIP for voice) to deliver services more efficiently than typical MVNOs. About half of its nearly 1 million U.S. users remain on the basic free tier, while the remainder pays for extras such as more data and voicemail. The company is expanding internationally, with live test users in the U.K. and plans to launch publicly there within weeks. FreedomPop has struck a partnership with Axiata to launch a free mobile service in Asia in the next six to 12 months under a separate "disruptive brand" powered by FreedomPop. Management says the Axiata deal is intended as a blueprint for further carrier partnerships in both emerging and developed markets. FreedomPop operates a freemium mobile service that gives away bundles of data, voice (via VoIP), and text while monetizing through upsells and device sales (phones and dongles). The company negotiates data-only deals with carriers and pays by usage rather than prebuying bulk minutes, which it says yields higher margins. It is expanding internationally (UK MVNO with Three and roaming plans) while growing U.S. users and aims to reach 1 million U.S. users by year-end. Financially, revenues are growing about 25% each quarter, gross service margins are roughly 50%, and management projects EBITDA profitability later this year. FreedomPop has no physical retail footprint, reports customer acquisition costs under $5, and plans to invest additional funding into customer service and global expansion. The company has faced M&A interest but elected to remain independent as it pursues a larger growth raise. FreedomPop offers a freemium wireless service and is preparing to become a wireless carrier with a zero‑cost monthly mobile plan (500MB data, 200 voice minutes, unlimited messaging). The company reported revenues beginning to ramp up, with device revenue and value‑add features (like data rollover and VPN) roughly split about 50/50. Its beta attracted strong early demand — over 100,000 users signed up in the first 72 hours. FreedomPop has struggled with hardware procurement in past device launches and is using new capital to bulk up inventory, seeking “tens of thousands” of devices including older HTC models and exploring LTE phones later. The company currently resells bandwidth from Sprint but is pursuing agreements with additional major carriers and is in talks with two of the big four nationwide carriers. Overall the business is expanding its user base and product offering while addressing supply constraints ahead of a broader launch.

Total raised

$107M

Funding rounds

7

Latest round

Equity

Latest activity

Jan 2016