Vienna-headquartered GoStudent, an online platform facilitating virtual learning interactions between students and teachers, revealed on Friday that it has successfully raised $97.7 million (roughly €86.79 million) through a combination of equity and debt financing.
Noteworthy participants in the funding round included Deutsche Bank, Left Lane Capital, DN Capital, Tencent, Prosus, DST, Coatue, and Softbank Vision Fund 2.
The raised capital will be directed towards realizing the startup’s hybrid vision and reinforcing the integration of AI.
GoStudent, in collaboration with Studienkreis, an offline tutoring company acquired by GoStudent in 2022, intends to utilize the funds to enrich educational offerings in the DACH region (Germany, Austria, and Switzerland). Their objective is to provide hybrid learning solutions that cater to the diverse requirements of students.
As the demand for a combination of online and offline support grows, which is evidenced by 61% of parents seeking such an approach, the companies will curate customized packages encompassing 1:1 online tutoring, group offline lessons, and sessions through GoVR, a virtual reality language learning platform.
This strategic direction aims to furnish adaptable and tailored education options for students within the region.
Furthermore, GoStudent is committed to harnessing AI-driven tools to amplify its hybrid educational strategy. This initiative capitalizes on the anticipated $10-20 billion global market size for AI in education by 2027.
According to GoStudent’s co-founder Felix Ohswald, “In the immediate term, our hybrid model offers families complete flexibility. If offline tutoring is preferred, but the family is away for the summer, they can opt for 1:1 online lessons to maintain learning momentum. Alternatively, if a child enjoys group English lessons but requires individual assistance in mathematics, we can accommodate this.”
He continues, “For us, hybrid education is about guaranteeing sustained learning success tailored to each individual’s needs. This funding round empowers us to seize this opportunity and reflects the confidence in our role as pioneers shaping the future of education,” adds Ohswald.
EdTech Firm With Whe Highest Valuation In Europe
Established in 2016 by Felix Ohswald and Gregor Müller, GoStudent is on a mission to revolutionize traditional tutoring through virtual teaching, enabling students to unlock their full potential.
The startup provides a digital learning platform that offers online teaching and paid personalized courses covering a wide range of school subjects.
With an impressive funding history of over €675 million, GoStudent has embraced the hybrid education approach, bolstering its services through strategic acquisitions like Seneca Learning, Tus Media, Fox Education, and Studienkreis.
GoStudent’s platform employs a membership model, delivering paid one-on-one video-based tutoring across more than 30 subjects, catering to students from primary to college levels. Presently, the platform boasts a workforce of 1,500 professionals collaborating with over 23,000 freelance tutors. The company operates across 15 countries, facilitating over 11 million tutoring sessions monthly.
The company is poised to introduce AI-powered content-based learning to its platform, enabling students to engage with tailored content between lessons, catering to their specific learning needs.
Ohswald elaborates, “Witnessing the daily impact of customized learning on a student’s confidence, we’re excited about offering AI-backed study assistance and virtual reality group lessons, alongside conventional tutoring. This holistic approach crafts a unique learning path for each individual student, preparing them for their future endeavors.”