FreedomPop’s New Money

FreedomPop is one of the newer mobile service provider startups out there. It started in Los Angeles in 2012 as a means of offering customers with a way to access free cell phone service. Of course, offering customers with free mobile, texting and data service is not something that comes cheap. Without an infrastructure, the company buys out data from larger cell phone providers at a wholesale price and then divides it up to its clients for free, up to a certain point, and then has the customer buy chunks of data for a small amount of money if they want more. To do this, the company does need to raise funding, which it has done so in drastic form recently.

According to Fortune, FreedomPop recently raised $30 million in order to grow its business. When combined with the other two years of fund raising, the company has now raised close to $50 million total in just three years. With the excitement of possibly obtaining free mobile phone service, many customers are looking forward to the services growing and expanding outward.

The company buys its wholesale data from Sprint, which is similar to what other discount carriers do, the only difference here is that FreedomPop does not charge its customers to use the data. In essence, it is giving the product that is is buying up away for free. Those who decide to use FreedomPop may be able to bring their own cell phone into the company, or they can purchase one from FreedomPop. The company sells mostly refurbished Samsung models, which again is going to cut down on the price of buying and maintaining a cell phone service. With this kind of money saving option, the company looks poised to have more customers flock to the services it can provide.