LetterOne (L1) has formed a partnership with FreedomPop, a disruptive US-based mobile provider based in California.
The announcement follows L1’s receipt of clearance from the Committee on Foreign Investment in the United States (CFIUS) to complete its USD50 million investment in FreedomPop, to assist and accelerate its international expansion.
L1 Technology, which aims to invest USD2 billion to USD3 billion in mid-to-late-stage technology growth opportunities, is investing in and looking for strategic partnerships with leading digital pioneer companies around the world. It recently announced a USD200 million investment in Uber.
FreedomPop, one of the fastest growing mobile service providers in the world, extended its disruptive “Freemium” business model from the US to the UK and Spain earlier this year. It plans to open an additional eight markets by the end of next year and rollout across Asia, Europe and Latin America thereafter.
L1 is partnering with FreedomPop to extend its operating relationships and knowledge of emerging markets and telecoms. In addition, L1 is assisting FreedomPop to better compete in an increasingly digital and OTT centric world.
“This partnership illustrates the value and impact that L1 Technology can have, particularly versus traditional private equity and later stage venture capital investors,” says Stephen Stokols, FreedomPop’s CEO. “L1 is not only capable of bringing significant capital, but also delivering valuable and accretive strategic partnerships for digital pioneer companies around the world.
“L1’s expertise will be used to accelerate our international expansion. L1’s unique ability to open new markets and new growth opportunities will deliver real value for us beyond what any typical late stage investor could do.”
Alexey Reznikovich, L1 Technology’s managing partner, says: “FreedomPop are true digital pioneers. It is disrupting the businesses of traditional mobile carriers by giving people ways to use mobile devices free of any call charges. As the telecoms market consolidates, and technologies advance, it’s important to remain ahead of the curve in terms of new customer propositions.”
