FSMS.co.za, a free mobile SMS service launched in South Africa last year aims to bring the freemium/freeconomics model to the mobile SMS space in South Africa. The Founder, Daniel Shwartzkopff was able to raise some venture funding for the startup from World of Avatar (WOA) and the company’s founder Alan Knott Craig Jnr, currently owns a 50% stake in the business.
The company’s growth been impressive. It currently has about 100,000 + registered users and attracts about 5 million page views to its website every month.
Business model: Provides text-based advertisements on the bottom of SMSes based on user demographics and keywords present in the SMSes in exchange for its free SMS service.
What do you think about this startup? Do you think this business model might work in other African countries? Why or why not?