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Preply, $70 million funding round. The new big of the E-Learning sector?

New round for Preply, a global language learning platform. The company has raised $70 million in equity and debt capital. This Series C round brings Preply's total funding to $120 million. The $70 million round was led by the equity company Horizon Capital, with participation from Reach Capital, Hoxton Ventures, and also previous investors in Preply, including Owl Ventures.

"It's a significant milestone to receive this new capital injection while most of the previous funding is still in the bank. This is the result of rigorous efficiency and a special focus on performance," comments Kirill Bigai, co-founder and CEO of Preply. He adds, "The new funds will allow us to expand our role as a leader in the industry through AI-supported human tutors, offering an optimal and innovative learning experience. Although Preply is now a global platform with employees from all around the world and diverse nationalities, the company was founded in Ukraine, and this is a milestone to celebrate as it reflects the resilience and determination of the Ukrainian technology sector in this complex period."

"We are excited to collaborate with the co-founders of Preply and their exceptional team. Preply is one of the rapidly growing global brands in the edtech sector and the undisputed leader in live language learning. We are proud to support them in this important growth phase," emphasizes Dmytro Boroday, partner at Horizon Capital.

Company Figures

Preply, which closed a $35 million Series B round in March 2021 following a $10 million Series A round the previous year, currently has nearly 500 employees from 60 different nationalities across 30 countries worldwide. It is a reference in the e-learning sector, with an international community of 35,000 tutors teaching hundreds of thousands of students every day. Over the last three years, Preply's revenue has increased tenfold, mainly due to the optimization of product experience, but the company is not yet profitable. The B2B sector has also grown, with over 200 new contracts signed in the last year. Companies like Datadog, GroupM, and Bain are taking advantage of Preply's extensive selection of language tutors to achieve tangible benefits in their employees' language skills, expanding their professional capabilities and increasing productivity.

In addition to this, last month Preply partnered with ETS (Education Testing Service) to offer top-notch preparation for the TOEFL iBT® test, which assesses English language proficiency and is used by over 11,500 institutions worldwide.

The E-learning Market

A continuously growing market. According to the Market Statsville Group, the global language learning market is expected to grow from $70.3 billion in 2022 to $266.4 billion by 2033, with an average annual growth rate of 18.1% from 2023 to 2033.

Increased public spending on education, rising investments in R&D in the sector, and widespread globalization support the growth of this industry, with various global players such as Babbel, Busuu, Fluenz, Lingoda, Living Language (Penguin Random House), Pearson, Preply, Rosetta Stone, Verbling, and Vabla.

Furthermore, the increasing language learning priorities among the Generation Z population, the constant expansion of social media, and the growing prevalence of smart devices are aiding the expansion of the global language learning market. Lastly, the growing trends of distance learning, the increasing digitalization of content, and a rising prevalence of gamified language learning lessons are positively influencing this vertical's trend.

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