The acquisition of VPNSecure by InfiniteQuant Ltd has led to significant backlash from customers as the company canceled thousands of lifetime subscriptions. CEO Romain Brabant expressed regret about the acquisition, stating that they should have reconsidered the move upon discovering that 90% of server usage stemmed from these lifetime subscriptions. VPNSecure's financial struggles demonstrated the high costs involved in maintaining a VPN service, including server upkeep and bandwidth, revealing the challenges of supporting a user base that had paid once through a previous owner.
... maybe, honestly, we should have just walked away from this 'opportunity,' said Romain Brabant, the CEO of InfiniteQuant Ltd.
After buying VPNSecure, InfiniteQuant Ltd learned that 90 percent of server usage came from customers with lifetime subscriptions.
There's no sustainable way to support an inherited user base of thousands who paid once, long ago, through a different company - especially without VC money or outside funding.
VPNSecure was generating about $6,000/month in recurring revenue with $4,000/month in hosting costs.
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