RingCredible enables free calls via Wi-Fi, 3G and 4G to landlines. It claims to be 90% cheaper than normal international phone calls and even cheaper than Skype.
The €1 million in funding comes from PPM Oost and previous investor Brooklyn Ventures. PPM Oost is the venturing arm of Oost NV. The regional development agency of the Dutch eastern provinces Gelderland and Overijsel. Brooklyn Ventures invested €550K in RingCredible last summer in a Series A round. The new funding is predominately intended from ramping up the marketing efforts of the company in order to turn the company’s name into a household brand like Skype or Whatsapp.
Brooklyn Ventures is a local VC firm in Breukelen. Interestingly the CEO of RingCredible, Hans Osnabrugge, is also a partner at Brooklyn Ventures and both companies were launched at about the same time, in fall 2010.
In just a year RingCredible grew from half a million to 2.5 million users. Not through organic growth however. The increase in users can be entirely attributed to the acquisition of Hong Kong based Yeloworld, according to Dutch news site nu.nl. RingCredible told nu.nl that it doesn’t rule out future acquisitions.
The startup is currently active in Europe, The USA, Canada and Latin America. It hopes to expand to Asia and Africa in the next five years.
After publication the CEO of RingCredible Hans Osnabrugge contacted us to clarify how the company grew to its current 2.5 million user base. This is what Osnabrugge said:
“Only 150.000 – 250.000 users can be attributed to the acquisition of Yeloword. The rest is from organic growth. Before the acquisition of Yeloworld we already had 1.5 million users and currently have over 2.5 million users. “
Photo Credit: Menno van der Horst