Jaxtr raises $10 mil. in series B
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Voice over Internet protocol company Jaxtr has raised a $10 million Series B round and announced a paid service that the fast-growing company said would allow it to reach break-even next year. Valuation for the new round, which was led by Lehman Brothers Venture Partners, was not disclosed.
The paid service, will allow users of Jaxtr to call anywhere in the world on their mobile phone. This is much less expensive than calling through traditional telephone lines for international calls and would by next year give the company a 50-50 split between advertising and paid services revenue, Chief Executive Konstantin Guericke said.
Under the new service, Jaxtr will require users making calls to people who are not Jaxtr members to pay for those calls. These calls can be made from land lines or mobile phones. In addition, the company will be offering premium services for customers - such as customizable contact pages, enhanced digital voicemail features and higher allotments of free international SMS per month at a price which will generate additional revenue stream for the company.
Jaxtr has experienced rapid viral growth, to 10 million current users from 5 million in December and 1 million in August. About 85% of the company’s users are international. The top countries using the service are the U.S., China and India.
The company said its rates are better than standard telephone company rates or calling cards. For example, even with the paid service, a call to China costs $0.01 per minute, and a call to India costs $0.06 per minute.
SOURCE: Jaxtr
