Ooma Raises $17.3 Million For Its “Free” Home Calling Service

VoIP free domestic calling service Ooma has raised another $17.3 million in funding from existing investors Draper Fisher Jurvetson, Founder’s Fund and others. This brings the company’s total funding to a sizeable $83.3 million.

What’s compelling about Ooma is that company sort of flips the Vonage model on its axis — While Vonage charges a monthly service fee and gives away its VoIP hardware, Ooma sells its Telo product for $200 and then offers the domestic calling capabilities gratis for as long as customers own the product.

Ooma also has international calling plans, starting at a penny a minute to call 60 different countries.

Marketing exec Jim Gustke tells me that the 50 person, Palo Alto based company will be using the new funds to expand its marketing efforts and will be revealing new product developments at CES. “Stay tuned!” Gustke says.