Fring builds mobile voice and video calling services for smartphones, including group video calls and the fringOut paid calling service. The company monetizes through advertising and voice calling fees. It recently launched group video calls and is packaging a video communication suite for broader device support. Management plans to use new financing to expand the product portfolio and bring its video suite to more devices and user segments. Fring reports an annual revenue run rate of around $10 million. Operating metrics include more than 1 million activations per month (over 40% in the U.S.), about 10 million video call minutes per month, and over 100 million voice minutes per month. Fring offers a free, ad-supported mobile application that enables VoIP calling, instant messaging, and integration with web-based social networking services. The company plans to expand compatibility to more mobile environments (including Android), support additional web-based community services, introduce new features, and make usability improvements. Fring was founded in 2006 and is based in Israel. Prior to this round it had raised $13 million since inception; the Series C amount was not disclosed but is said to be roughly on par with its August 2007 Series B (reported near $12M but later suggested around $10M). The Series C capital came from its previous backers: North Bridge Venture Partners, Pitango Venture Capital, Veritas Venture Partners and VenFin Limited. The company cut about 20% of its workforce during the economic slowdown despite reporting that revenues were on the upside, saying the layoffs were intended to extend its runway through 2009. Fring competes with startups such as Nimbuzz, Truphone and eBuddy, and increasingly with Skype as it moves into the mobile handset market. Fring is a mobile application for Windows and Symbian phones that routes voice calls and instant messages over Wi‑Fi, 3G, or GPRS to offer cheap or free mobile calls. The app charges a nominal fee for calls to standard phone lines while calls to other internet phones are free. Fring connects to standard phones, SIP‑based VoIP clients, and multiple chat services including Skype, MSN Messenger, ICQ, Google Talk, and Twitter. The service has drawn praise from outlets like Crunchgear and TechCrunch for its multi‑chat integration and free calling model. The company has faced reported issues with call quality and the cost of compatible 3G handsets. Financially, Fring closed an estimated $12 million Series B led by North Bridge Venture Partners, with participation from VenFin and previous backers Pitango, Veritas, and Yossi Vardi.

Total raised

$22M

Funding rounds

3

Latest round

Series C

Latest activity

May 2011