Preply, a global language learning marketplace, has successfully closed a $150 million Series D funding round, elevating its valuation to $1.2 billion. The investment, led by growth equity firm WestCap, marks a significant milestone in the company's mission to scale its unique educational model. This new capital injection will fuel Preply's strategy of combining human-led instruction with advanced artificial intelligence to deliver personalized learning experiences worldwide.
Strategic Funding for AI-Enhanced Learning
This latest round brings Preply's total funding to approximately $299 million, with participation from existing investors like The European Bank for Reconstruction and Development. The company plans to allocate the capital toward advancing its AI and data capabilities to further enhance the platform experience. These funds will also support the expansion of its product and engineering teams to accelerate global growth and reach more learners.
The partnership with WestCap provides Preply with strategic guidance from a firm known for scaling global marketplaces like Airbnb and StubHub. As part of the deal, WestCap Partner Allen Mask, a former senior executive at Airbnb, will join Preply's board of directors. His expertise is expected to be instrumental as Preply deepens its impact and solidifies its market-leading position in the edtech sector.
Balancing Human Connection with Artificial Intelligence
Preply is strategically positioning itself by using AI to enhance, rather than replace, the crucial element of human connection in learning. Its AI-supported tutoring co-pilot suite automates administrative tasks and provides actionable insights, allowing tutors to focus on teaching. This approach distinguishes Preply from competitors who are increasingly turning toward full automation in their learning platforms.
A recent study conducted with LeanLab Education validates the company's hybrid model, revealing that 96% of learners deem human interaction essential for progress. The research also found that students on the platform can advance up to three times faster than average industry benchmarks. These findings underscore the power of combining AI-driven tools with the guidance and confidence-building that a human tutor provides.
Resilience and Growth Amidst Adversity
Despite its global presence and U.S. headquarters, Preply maintains a strong connection to its Ukrainian roots, with co-founder and CEO Kirill Bigai leading the charge. The company remains deeply committed to its Kyiv office, where approximately 150 of its 750 employees continue to work amidst significant challenges. Preply has ensured the office is equipped with generators and is open 24/7 to support its Ukrainian team members.
CEO Kirill Bigai believes that navigating the adversity of war has forged a stronger, more resilient, and creative culture within the company. This resilience is reflected in its recent business performance, as Preply has successfully become EBITDA positive over the last twelve months. The company's growth trajectory demonstrates its ability to thrive while supporting its team through unprecedented circumstances.
With its new unicorn status and substantial funding, Preply is well-positioned to redefine the landscape of personalized education on a global scale. The company's proven ability to blend AI innovation with indispensable human instruction sets a new standard for the rapidly growing language learning market. This strategic investment from WestCap not only validates Preply's vision but also paves the way for its continued expansion and future success.