For CEO Stephen Stokols and the rest of the FreedomPop company the past three years have been both challenging and rewarding. The L.A. based start up hit the market running with investment money coming straight from the founder of Skype. Since then the mobile carrier has been trying to use that money in order to leverage a name for themselves and they’ve mostly succeeded. That success, along with the shark like attempts to eat up mobile carriers by telemarketers, has caused FreedomPop to become one hot commodity on the marketplace.
For the better part of the past few weeks, as reported by Fortune.com, FreedomPop has been rumored in M&A talks with various companies. Those rumors are finally put to bed now thanks to a statement by CEO Stephen Stokols. Freedmpop has decided to go on their own and push forward as an independent mobile carrier. A recent investment during the Series B round by Partech Ventures has made this decision much easier.
Partech Ventures, led by Mark Menell, partnered with Mangrove Capital and DCM Capital in order to allot almost $30 in investment capital for FreedomPop. This move has given the freemium company both the confidence and the capital in order to start spearheading a push into the hyper competitive European marketplace. In fact, they have already started their push with a basic product on offer and the Jetsetter international package.
FreedomPop already has one million subscribers to their service and the focus is on wholesale growth going forward. The reason that they can grow their business and afford offering free services is that they package their data after buying it from Sprint at wholesale company rates. Google has a similar arrangement with T-Mobile. FreedomPop chooses to eat much of the cost in order to allure new customers to their service.