Edtech Marketplace, Preply, Raises $35 Million in Funding

The online language learning platform plans to expand its activities worldwide, citing key opportunities for growth in the Middle East market

ABU DHABI, 9^th March 2021 — Edtech marketplace, Preply, has secured an additional USD $35 million of funding, a sum that exceeds the platform’s cumulative fundraising efforts since 2013. The round was co-led by Owl Ventures and Full In Partners, with participation from previous investors Point Nine Capital, Hoxton Ventures, as well as EduCapital, All Iron, Diligent Capital and Evli Growth Partners. Angel investors Niklas Ostberg, co-founder and CEO of Delivery Hero, Arthur Kosten, co-founder of Booking.com, Przemyslaw Gacek, co-founder of Grupa Pracuj, and David Helgason, co-founder of Unity Technologies are also participants.

This Series B announcement comes on the heels of an exceptional year for Preply with the number of active learners and tutors, GMV and overall revenues quadrupling across the board. In part, the hypergrowth can be attributed to the trend of e-learning adoption, already in motion and now accelerated by COVID-19 lockdowns. The extraordinary performance gains also correlate with how Preply is combining it’s human-led approach with a proprietary curriculum product covering the full learning journey with AI powered features.  This technology has significantly increased the length of time each learner spends on the platform, resulting in a 16% increase in purchased lessons per student.

As one of the Middle East’s leading economies with a high interest in language learning, the United Arab Emirates is a key market for Preply. English is the most popular language of study in the UAE and accounts for more than 25% of the demand from learners, while other popular languages include Arabic, French, Spanish, and German. Beyond those more popular language selections, Preply also has UAE residents learning Romanian, Finnish, or even Vietnamese.

In addition, Egypt is the most favoured country of birth for tutors teaching on Preply, as ranked by UAE Learners. This preference is closely followed by the UK, France, and the US. In terms of cities, Dubai and Abu Dhabi are the biggest cities for UAE Learners on Preply, representing 75% of the country’s traffic combined.

Kirill Bigai, CEO of Preply, said “This round represents an exceptional achievement for the entire team following the exciting journey over the past years.  This new funding will help us tackle a variety of strategic priorities, as we plan to double our workforce across all divisions and locations. We’ll add more value for both students and tutors by improving support systems and amplifying the classroom and curriculum experience which has proved so valuable already.”

Bigai adds, “We also have big plans to build out our B2B business, which we expect to become a much larger proportion of our revenues in the coming years. As we secure our leading position in Western Europe and North America, we’ll be diversifying our media and marketing mix to build a globally-recognised brand. I’m personally most excited by the prospect of scaling in promising new markets to really deliver on our mission to shape the future of effective learning”.

Ross Darwin, Principal of Owl Ventures, said: “As a firm dedicated to scaling transformative education companies, we are highly optimistic about the online language learning market which is estimated to be worth over USD 21 billion by 2024.  We couldn’t be more excited to invest in Preply and are confident that they’ll capture a big piece of that pie”.

Jessica Davis, co-founder and Managing Director at Full In Partners, commented “We were impressed with Preply’s differentiated and highly scalable model for language learning.  We have spent a decade investing in edtech and marketplace businesses and Preply really stands out for its strong leadership, high-velocity growth, and greenfield market opportunity.”