Virgin Mobile has recently entered the ever-growing mobile market of Chile, and has consequently managed to attract some 65,000 customers in just 4 months. That’s nice pace but in order to keep it up, the company needs more money, and it’s turning to IFC to get “that part” done.
Under the deal, Virgin Mobile will be provided with the $11 million debt facility to “speed its entry into the Chilean mobile market.” Moreover, the same cash will be used to “enhance the mobile market in a number of Latin American countries including Brazil and Colombia”.
Like in many other countries, Virgin Mobile’s offering appeals to the youth with its “strong no-contract voice and data packs, superior customer service, and through its fun and irreverent brand image”.
Earlier this year, Virgin Mobile Latin America secured $26.5 million of equity funding from investors like Virgin Group and Hermes Growth Partners, a fund co-founded by former Telefonica head Juan Villalonga.
According to Wireless Intelligence, the Chilean market is dominated by Entel (9.8 million connections), Telefonica’s Movistar (9.6 million) and America Movil’s Claro (5.7 million).