TL;DR:
- Language learning platform Preply, founded in Ukraine and based in the U.S., has raised $70 million in new funding.
- The funds will be used to enhance Preply’s utilization of artificial intelligence (AI) in its platform.
- The company connects learners with human tutors and offers a marketplace for language education.
- Preply’s previous funding round raised $50 million, bringing the total funding raised to over $170 million.
- The incorporation of AI aims to provide a personalized learning experience and strengthen Preply’s market leadership.
- The funding showcases ongoing investor interest in Ukrainian startups despite geopolitical challenges.
- Preply faces competition from language learning apps like Duolingo, which has seen significant growth using AI tools.
Main AI News:
Preply, the Ukrainian-founded language learning platform, has secured an impressive $70 million in fresh capital. This funding infusion aims to propel Preply’s utilization of artificial intelligence (AI) to new heights. With its roots in Ukraine and headquarters in the United States, Preply has attracted notable investors, including Horizon Capital, Reach Capital, and Hoxton Ventures.
This latest funding round follows Preply’s successful $50 million Series C funding last year, bringing the total raised funds to over $170 million. The company has become a leading marketplace, connecting individuals with human tutors to facilitate language acquisition. Through Preply’s platform, learners can access tutor profiles and choose the best fit based on hourly rates. In return, Preply receives a percentage of the tutors’ charges.
Moreover, Preply has expanded its services beyond individual learners, catering to prominent enterprises like Datadog, GroupM, and Bain. These companies utilize Preply to enhance the foreign language skills of their teams. While Preply has experienced remarkable revenue growth, it has yet to achieve profitability. Nonetheless, its potential and success are evident, with revenues growing tenfold over the past three years.
Kirill Bigai, Preply’s co-founder and CEO, expressed his vision for the future, stating that the company aims to solidify its leadership in the online language learning sector through AI-powered human tutors. Bigai emphasized the transformative nature of this learning experience, which has the potential to revolutionize the industry. As a Ukrainian-founded company with substantial research and development activities in Ukraine, Bigai views this funding milestone as a testament to the resilience and determination of the Ukrainian tech sector.
This funding injection comes at a time when startups face more stringent fundraising conditions, as the ease of securing investments witnessed during the technology boom of 2020 and 2021 subsides. However, the demand for AI tools remains an exception to this trend, with startups like Preply raising significant sums of money. OpenAI’s ChatGPT, among other tools, has gained popularity, attracting venture capitalists searching for AI-driven companies poised for success.
Preply has already harnessed machine learning to enhance the matching process between learners and tutors. Now, the company plans to deepen its integration of AI by introducing an AI assistant. This assistant will support tutors by providing exercises, grammar explanations, and conversation starters, further enhancing the overall learning experience.
Notably, Preply faces competition from Duolingo, which has leveraged OpenAI’s GPT language processing software to personalize its language learning app. Duolingo’s shares have experienced substantial growth this year, underscoring the demand for language learning solutions. Other rivals in this space include Babbel and Busuu.
In addition to Preply’s achievements, this funding round highlights the enduring interest of tech investors in Ukraine. Despite the country’s challenges due to Russia’s invasion, Ukraine continues to produce remarkable entrepreneurial talent. Horizon Capital, for instance, raised $125 million for a startup fund dedicated to supporting Ukrainian founders. Ukrainian entrepreneurs have played pivotal roles in billion-dollar “unicorns” such as Grammarly, GitLab, and others. Furthermore, global tech giants like Google, Samsung, and Amazon have established research and development centers in Ukraine, further cementing its status as a hub for innovation.
Conclusion:
Preply’s successful $70 million funding round highlights the growing importance of AI in the language learning market. By integrating AI into its platform, Preply aims to offer a more personalized and effective learning experience for its users, positioning itself as a leader in the online language education sector. This funding also demonstrates continued investor confidence in Ukrainian startups and their potential for innovation. With competitors like Duolingo also leveraging AI tools, the language learning market is becoming increasingly competitive, emphasizing the need for companies like Preply to stay at the forefront of technological advancements to maintain their market position.
