Firsty puts pressure on eSIM rivals with a different approach

A small Singapore-based startup – with close to US$10 million in funding to date – is aiming to revolutionize the way eSIMs are offered.

Firsty uses a network that plugs directly into telecom infrastructure to manage and distribute data traffic instead of purchasing and reselling data bundles. It switches between telecom carriers to optimize for the best coverage and pricing.

Image credit: Timmy Loen

Co-founded by ex-Adyen executives Vince Vissers and Gauthier Thierens in 2023, Firsty draws inspiration from the fintech firm’s payments terminal, which the pair helped develop. The terminal is designed to work anywhere in the world.

Firsty has agreements with “all Tier 1” telco providers worldwide, including Singtel in Singapore, KPN in the Netherlands, and Telefonica in Spain, CEO Vissers tells Tech in Asia.

Just over a year after the launch of its app in mid-2024, Firsty says that it has racked up over a million downloads. While not all of them are paying users, 60% of its paid customers have made a repurchase, according to Vissers. The firm is seeing the biggest growth in markets like the US, UK, Germany, Singapore, and Japan.

Firsty is hoping to make a dent in the cut-throat market of eSIMs, where hundreds of players offer a highly commoditized offering with little differentiation. If it takes off, the company could squeeze scores of eSIM providers already operating on thin margins.

Decoupling revenue from data usage

Most eSIMs on the market remain pricey as providers buy fixed bundles at high wholesale rates.

Varun Gupta, senior analyst at market research firm Counterpoint Research, believes that most travel eSIM providers “are not making any money” due to high customer acquisition costs.

“Right now, the traveling game is all about who is putting more marketing budgets and pushing their brand to the top of the Google search results, because everybody is providing similar connectivity,” he adds.

Firsty uses a multi-IMSI setup, allowing multiple mobile subscriber identities to be stored on a single card. This means users only need to download a Firsty eSIM onto their device once for it to work in over 180 countries.

The technology itself isn’t difficult and “anybody can do it,” says Danish Lakhani, co-founder of eSIM operator Rockee, but it can be costly to maintain. His firm also studied the solution but decided that “it was not profitable for us.”

Lakhani notes that “data is very expensive in certain countries,” such as in Turkey, Qatar, and Brunei. Instead, Rockee chose to ringfence coverage to certain markets within Europe and the US, where operating costs are more manageable.

He adds that providers need an extensive number of customer support agents if they offer multiple plans that “have so much differentiation.” According to Lakhani, customer service support makes up 30% to 40% of an eSIM provider’s operating costs.

Moving beyond re-selling data bundles

More consolidation to come?