Preply, a global language learning community, recently secured an additional $70 million in equity and debt capital, bringing its Series C funding to a total of $120 million. The Ukrainian-founded company has experienced remarkable growth, connecting 35,000 tutors with learners from around the world. With nearly 500 employees representing 60 nationalities across 30 countries, Preply has become a prominent player in the e-learning industry.
The funding round was led by growth equity firm Horizon Capital, with participation from Reach Capital, Hoxton Ventures, and other existing investors. This diverse group of investors, including Owl Ventures, who led Preply’s Series C funding in 2022, brings a wealth of growth stage experience and education technology expertise to support the company’s future endeavors.
Over the past three years, Preply has witnessed significant revenue growth, expanding tenfold. This growth can be attributed to continuous product improvements that enhance the experience for both tutors and learners. Additionally, Preply’s B2B business has flourished, with over 200 new deals signed in the last year.
Notable companies such as Datadog, GroupM, and Bain leverage Preply’s vast selection of live language tutors to enhance their teams’ communication skills, thereby boosting employee confidence and productivity. Moreover, Preply recently partnered with Education Testing Service (ETS), a renowned language authority, to provide a personalized TOEFL iBT® preparation experience. TOEFL iBT® is an English proficiency measure used by over 11,500 institutions worldwide.
While Preply utilizes AI to scale learning and improve access, the company remains committed to human-led teaching at its core. Preply has developed a teaching assistant powered by AI, enabling tutors to create various exercises, grammar explanations, and conversation starters. This AI tool assists tutors in homework setting and lesson planning, freeing up their time for more advanced teaching tasks that require human input.
Furthermore, Preply leverages data analysis to identify areas where learners may be struggling, allowing for the development of personalized lesson plans and summaries tailored to each learner’s needs. These insights are shared within the tutor community, fostering collaboration and enhancing the overall learning experience.
Dmytro Boroday, a partner at Horizon Capital, expressed excitement about partnering with Preply’s co-founders and management team, highlighting Preply’s status as a rapidly growing global edtech brand. Boroday commended Preply’s operational excellence and past achievements, stating that Horizon Capital is proud to support the company’s future growth.
James Kim, a partner at Reach Capital, emphasized Preply’s leadership in live language learning and the potential of AI to enhance tutoring effectiveness and learner experiences. Kim affirmed Reach Capital’s enthusiasm to partner with Preply as it continues to expand and incorporate AI into the learning journey.
Preply’s recent funding success and continuous advancements in e-learning technology position the company for further growth and innovation in the language learning space. With a strong focus on both human-led teaching and AI-driven support, Preply strives to empower learners and tutors worldwide, facilitating effective language acquisition and communication skills development.
