Preply, an online language learning marketplace that connects tutors with learners, revealed that it has successfully raised $70M (approximately €62.4M) in a new funding round. The company was originally founded in Ukraine and is currently based in the United States.
According to CNBC, the company successfully raised funds through a combination of new equity and debt. Horizon Capital led the equity portion, with support from Reach Capital, Hoxton Ventures, and other investors.
This recent announcement follows a year after the startup secured €49.87M in a Series C funding round led by Owl Ventures in July 2022. In total, the company has raised an impressive $170M in funding so far.
Kirill Bigai, the co-founder and CEO of Preply, expressed their intention to utilize the funds to strengthen their position as a dominant player in the online language learning category. Their focus is on leveraging AI-powered human tutors to deliver a transformative learning experience, which is becoming increasingly crucial in the industry.
Notably, Preply employs machine learning to improve the pairing of learners with appropriate tutors, and now they are taking it a step further by integrating additional AI capabilities. One recent development is the introduction of an AI assistant, designed to aid tutors in creating exercises, offering grammar explanations, and suggesting conversation starters, further enhancing the learning journey on the platform.
Preply, founded in 2012 by Dmytro Voloshyn, Kirill Bigai, and Serge Lukianov, stands as a remarkable online learning platform connecting over 40,000 tutors, offering instruction in 50 languages to learners across 180 countries worldwide.
At the heart of Preply’s success lies its machine-learning algorithm, which enables efficient tutor-learner pairings, transcending geographical barriers and unlocking the secrets to effective language learning.
Take, for instance, a learner in London seeking to master a new or foreign language. With ease, they can discover a language expert who perfectly fits their schedule and budget.
Notably, Preply recognizes that most learners prefer classes before or after work, leading to a scarcity of available tutors during these times—a challenge the edtech startup is keen to address, known as the “rush hour challenge.”
With an impressive team of over 400 employees representing 58 different nationalities, Preply prides itself as a US-based company, boasting a diverse workforce spread across 30 countries in Europe, the US, Africa, Asia, and Latin America.