Closure comes just two weeks after the company revealed a fundraising target of £3 million by Easter to bring the service to several hundred thousand users this year
Ovivo Mobile has shut down without explanation, just two weeks after outlining ambitious growth plans.
The advertising-funded airtime provider, which was founded by Vodafone MVNA Cognatel in April 2012 and had around 50,000 customers, closed its website last night (March 20).
A post on its website reads: “We are very sad to announce that for reasons beyond our control, Ovivo Mobile is closing down on the evening of Wednesday 19th March, 2014.”
It added that for Ovivo customers to keep their mobile number, they would have to fill out a form below the above message and their PAC code would be sent to them.
Ovivo’s Facebook and Twitter pages have also been deactivated.
Users took to web forums to complain about the company. Many were upset the firm didn’t warn them it was closing, while others claimed some purchases were allowed to go through as late as Wednesday afternoon.
They reported mobile services had been shut down and that they couldn’t access their accounts on Ovivo’s system to retrieve unused airtime credit.
Attempts to contact Cognatel have so far proved unsuccessful.
The closure of Ovivo comes just two weeks after Ovivo CEO Dariush Zand revealed to Mobile News that it had set itself a financing target of £3 million by Easter as part of plans to bring the service to “several hundred thousand users” this year.
He added the plan was to expand the business in the UK before looking at international expansion. The company, which raised £1 million in early 2013, delivered its 50,000th SIM card to customers in January.
Ovivo offered a variety of calling, text and data bundles for a £20 upfront fee, £15 of which remains as a credit balance.
Customers then received monthly calls, texts and data allowances for no monthly charge, but could add to the allowances by topping up. Users were then targeted with advertising via their web browser based on their age, gender, location and browsing history.