Preply, the language learning platform, has successfully closed its Series C funding round at $120 million and is now set to focus on advancing its AI capabilities. The company, which is known for connecting students with live tutors, raised an additional $70 million in a combination of debt and equity financing, bringing its total funding to $120 million. Leading the round is Horizon Capital, with participation from Reach Capital, Hoxton Ventures, Owl Ventures, and other existing investors.
While Preply has built its reputation on its extensive network of human tutors, it aims to leverage AI to further enhance the learning experience and expand its reach. The funding will be used to scale up the company’s AI capabilities, enabling it to deliver a more personalized and effective learning experience. Preply believes that AI, coupled with human-led learning, will be a game-changer for language education.
Preply, originally founded in Ukraine, has thrived despite the country’s challenging political situation. Over the past few years, the company has experienced significant growth, with sales increasing tenfold and securing 200 new contracts within the B2B sector. Notable customers include Datadog, GroupM, and Bain.
The integration of AI into Preply’s platform is not entirely new. The company already offers an AI teaching assistant to assist tutors in creating exercises, grammar explanations, and conversation starters. Additionally, Preply has developed AI analytics tools to monitor student progress. The latest funding will enable Preply to further enhance these AI elements and meet the current demand for AI-powered language learning solutions.
Preply’s decision to invest heavily in AI can be seen as a strategic move to stay ahead of competitors like Duolingo, which is also exploring AI-driven advancements in language learning. By incorporating AI into its platform, Preply aims to improve the effectiveness of tutors and provide a more immersive learning experience for students.
Kirill Bigai, co-founder and CEO of Preply, expressed his excitement about the funding round and the company’s vision for the future. He emphasized that while AI will play a crucial role, Preply remains committed to human-led learning as its core value. The funding will enable Preply to continue its leadership in the language learning sector and establish itself as a pioneer in AI-powered human tutoring.
Dmytro Boroday, a partner at Horizon Capital, commended Preply’s performance and operational excellence. He expressed the company’s pride in supporting Preply as it enters the next phase of growth. James Kim, a partner at Reach Capital, highlighted the potential of AI to enhance the tutor-student experience and applauded Preply for its innovative approach to language education.
As Preply embraces AI, it looks set to revolutionize language learning by combining the strengths of human tutors with the benefits of AI technology. With its recent funding success, Preply is well-positioned to drive the future of language education and meet the evolving needs of students worldwide.
