Preply Hits $1.2 Billion Valuation Amid Impressive Growth and AI Integration
Language learning marketplace Preply has reached a remarkable valuation of $1.2 billion after successfully raising $150 million in a Series D funding round. This milestone marks a significant evolution for the 14-year-old company, which has garnered support from notable investors such as Horizon Capital, Hoxton Ventures, Owl Ventures, and Techstars Berlin.
An Era of Profitability and Progress
Since its inception in 2013, Preply has connected language learners with qualified tutors, and the company has achieved a notable milestone by being EBITDA profitable for the past twelve months. This success coincides with the increased integration of artificial intelligence into its platform, aimed at enhancing the support provided to its 100,000 tutors while scaling operations further.
AI and Human Tutors: A Balanced Approach
The realm of AI in education is complex; for instance, Duolingo recently faced criticism after announcing its transition to becoming an “AI-first company.” Preply, however, maintains a clear stance that it will not eliminate human tutors. Instead, the company views AI as a tool that can bring much-needed consistency to a model reliant on self-employed instructors. “The future of learning is going to be human-guided and amplified by AI,” stated Preply’s CEO, Kirill Bigai, in an interview with TechCrunch.
Innovating with AI
According to Bigai, the integration of AI at Preply already includes features such as lesson summaries and personalized homework. Moreover, artificial intelligence is utilized to pair learners with tutors that best suit their needs. To escalate these capabilities, Preply is actively hiring AI talent across its four offices located in Barcelona, London, New York, and Kyiv. Despite the ongoing conflict in Ukraine, which has impacted Kyiv, the company remains dedicated to its Ukrainian roots.
Supporting Ukraine During Turbulent Times
Headquartered in the U.S., Preply was co-founded by Ukrainians, and the company has been actively supporting its homeland since the onset of the war. “We are very committed to the Ukrainian office,” Bigai emphasized. Out of its 750 employees, approximately 150 are based in Kyiv. Despite regular power outages and other challenges posed by the conflict, Preply has ensured a stable working environment for its Kyiv team. “Our office has different generators so we have electricity, Internet, and the office is warm and it’s open 24/7,” Bigai said.
Resilience in Adversity
The Ukrainian team’s unwavering spirit amid adversity has deeply impressed Bigai. “Ukrainians are going through very challenging times, and it builds significant resilience and creativity,” he stated. The struggle has undeniably shaped the company, fortifying it in ways that contribute to its growth and adaptability. “The fact that the company went through this experience—how so many people helped others—made us stronger, more resilient, and more creative,” he added.
Looking Ahead: Future Aspirations
With this latest funding milestone, Preply joins the ranks of a growing cohort of Ukrainian-origin unicorns, including Fintech-IT Group and Grammarly. Preply may also aspire to emulate successful exits like Airbnb, with former CFO Laurence Tosi leading the Series D funding round through his growth equity firm, WestCap. Although Bigai noted there are no immediate plans for an IPO, he acknowledged that WestCap’s extensive expertise in taking companies public is an avenue they will consider moving forward.
Conclusion: A Bright Future for Preply
As Preply continues to navigate the challenges and opportunities in the edtech space, its commitment to combining human-driven education with advanced technology positions it well for future growth and innovation. The journey ahead looks promising as the company balances its Ukrainian heritage with the demands of a global market.
