After weighing the possibility of selling itself, FreedomPop has opted to raise $30 million instead. The funds will be raised by Partech Ventures-a European venture capital as well as current investors Mangrove Capital and DCM Capital. The report released by Recode suggests that a strategic plan of the investment is to be released later.
Last month, it was clear the company was planning to expand to European countries, while at the same considering injecting more funds or selling itself. The CEO was quoted saying that they had multiple offers but it was premature to sell it. The company shelved it plans not to sell because it would be worth three to four times next year if it’s able to expand internationally.
FreedomPop is among new-wave service providers using transmissions from major carriers to offer their services. The company ‘s strategy is to offer limited amount of voice, data and text for free, and at the same time earn money while the limits are surpassed. The company is also planning to venture into retail partnerships around October.
So far, the company’s service and devices are found exclusively online. According to Stokols, the CEO, several retailers have an interest of selling the company’s gear and as such, they are planning to test the waters to see whether it will work. The company is working to improve its weak spot-customer service. This will be achieved by increasing human positions and upgrading the software used to manage customer service.