Flyp announces $5.8M seed round; to expand services to 30 countries

Flyp, a US-based telecommunication company, has received a seed funding of $5.8 million. Key investors include Aspect Ventures, Acorn Ventures, Structure Capital, MAG Ventures, Morningside Technology Ventures, Russell Simmons, and Jeffrey Parker. Available on iOS and Android, the app-based service is currently available in the US, Canada, and 15 countries in Western Europe. The seed funding will help it expand to other planned 30 countries this year.

Lapped up by enterprises

The app enables users to have a maximum of six unique phone numbers active simultaneously on one device. As Flyp uses the services of prevailing subscribed cellular networks [it does not use internet data for connecting calls; more on that later], the quality of the call and text is premier and calls can be made and received to any number in or out of the Flyp network. It also gives a real US number to its international customers to enjoy the highest quality of calls and texts. The app claims to have already crossed more than one million downloads, and claims that more than 50 percent of its users have “characterized themselves as freelancers and small business owners,” helping them segregate personal and professional communication. Peter Rinfret, Flyp Co-founder and CEO, said, “We’re building a modern telecommunications company that addresses consumers’ two biggest communications concerns: quality and cost. The traditional telcos deliver the quality, but at a super high cost. The OTT companies deliver affordability, but often lack reliability and have limited reach.”

“Flyp has engineered a completely new platform that takes advantage of the quality and openness of the traditional telco infrastructure, while operating on OTT-like economics. The result is a low-cost service that delivers exclusive features and functionality with unmatched call quality.”

How will Flyp use the funding

• Polishing the user experience
• Expanding business quality features
• Launching the service in more than 30 countries in 2016

“We’ve been deeply impressed by the rapid organic growth that Flyp has achieved in a short period of time. We think their differentiated technology coupled with the market validation they’re already getting puts them in a unique position to change mobile communications,” said Jennifer Fonstad, Founder at Aspect Ventures.

How does Flyp work?

Flyp works in tandem with the existing cellular number, which is used for authentication and tethering and call routing purposes. All calls made through Flyp use the current subscription plan. “This means when you use Flyp, you’re not competing with the person streaming Netflix or surfing the web near you to get a strong connection. With Flyp, you’re making a call through your cellular network, which is a lot less cluttered and therefore much higher quality,” states a company page FAQ. The app comes with one free number and area code. Five more numbers can be added using a subscription plan of $2.99 per month for each number – or at a yearly discounted price of $29.99. Does that mean any additional costs? Since “Flyp uses the carrier network, and not VoIP, to connect phone calls, your minutes are tied to your existing carrier plan. If you have an unlimited minutes plan with your carrier, Flyp will have no impact on your billing. If you do not have an unlimited minutes plan, calls using a Flyp number will show as billed minutes on your carrier plan,” states another FAQ. So how does Flyp distinguish itself from other disposable number apps like Burner or Hushed? Flyp numbers are permanent numbers, which the company has bought from cellular providers; and last as long as one keeps paying the monthly bills. Also with features like Quick Reply text messages (similar to Android Quick Responses), it looks like the company is aiming for its system’s tool set to be in the realm of or better than that of competition.