Despite the tumultuous nature of the business, it appears the mobile virtual network operator market hasn’t lost the interest of private equity and venture capitalists. Movida Communications Inc. announced that it received $40 million in financing from a group of new and existing investors.
The prepaid wireless services provider, which targets Latino consumers and runs on Sprint Nextel Corp.’s CDMA network, recently topped 250,000 subscribers. It plans to use the new funds to sustain the company’s growth.
Plainfield Asset Management L.L.C. and The Cisneros Group of Companies led the firm’s funding round.
“We and our investment partners see tremendous potential in the prepaid telecom sector, and Movida has demonstrated a strong ability to build allegiance and loyalty to its brand among Hispanic consumers in a relatively short amount of time,” said Les Levi, partner at Plainfield Asset Management, a hedge fund based in Greenwich, Conn.
Brightstar Corp., Bay Harbour Management L.L.C. and Darby Overseas Investments Ltd. also participated in the investment.
The investment is notable as several high-profile MVNOs, including Amp’d Mobile Inc. and Mobile ESPN, have recently shuttered operations.
Hispanic-focused MVNO nets $40M
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