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Preply Raises $70 Million to Expand Use of Artificial Intelligence in Language Learning
Preply Secures Fresh Capital for AI Investment
Preply, a language learning platform that connects individuals with tutors, has raised $70 million in funding. The investment will be used to accelerate the integration of artificial intelligence technologies into its platform. The funds were obtained through a combination of equity and debt, with Horizon Capital leading the equity portion. The company has now raised a total of over $170 million in funding.
AI-Powered Tutors Transforming Language Learning
Preply operates as a marketplace that matches users with human tutors, enabling them to learn new languages. Each tutor has a profile that includes their hourly rate, allowing learners to find the best fit for their needs. Preply takes a percentage from the tutors' earnings. Additionally, Preply serves large companies like Datadog, GroupM, and Bain, helping them improve their teams' language skills. While not yet profitable, Preply has experienced significant revenue growth in recent years.
Expansion Plans and Embracing AI
According to Kirill Bigai, Preply's CEO, the company plans to use the new funding to further solidify its position as a leader in online language learning. By incorporating AI-powered human tutors, Preply aims to provide a groundbreaking learning experience. The funds will be utilized to enhance the platform's capabilities and expand its reach. Bigai also expressed pride in the company's Ukrainian roots and its contributions to the Ukrainian tech sector.
Thriving in a Challenging Fundraising Environment
The timing of Preply's funding announcement is noteworthy as many startups are facing tighter fundraising conditions. However, AI-related ventures, like Preply, continue to attract substantial investments due to the increasing demand for AI tools. Preply already uses machine learning to improve tutor-learner matching and has recently launched an AI assistant to assist tutors with exercises, grammar explanations, and conversation starters.
Ukraine's Tech Sector and Investor Interest
Preply's successful funding round is a testament to the resilience of the Ukrainian tech sector. Despite facing challenges from Russia's invasion, Ukrainian founders and startups, including Preply, have attracted significant attention from tech investors. Horizon Capital recently raised $125 million for a startup fund focused on supporting Ukrainian entrepreneurs. Notable unicorns with Ukrainian origins include Grammarly and GitLab. Major technology companies like Google, Amazon, and Samsung also have research and development centers in Ukraine.
Conclusion: The Implications for New Business in AI Language Learning
The recent success of Preply in securing $70 million in funding to expand the use of artificial intelligence in language learning has significant implications for new businesses entering the AI education market.
With the increasing demand for language learning tools and the proven revenue growth of Preply, it is evident that AI-powered tutors are transforming the way people learn languages. This presents a lucrative opportunity for new businesses to tap into the market and offer innovative AI solutions to language learners.
The integration of AI technologies into language learning platforms not only improves tutor-learner matching but also enhances the overall learning experience. AI assistants can provide personalized exercises, grammar explanations, and conversation starters, making language learning more engaging and effective. New businesses that can leverage AI in these areas have the potential to attract substantial investments and gain a competitive advantage in the market.
Furthermore, Preply's success highlights the resilience of the Ukrainian tech sector, despite facing challenges from geopolitical events. This demonstrates that geographic location is not a barrier for attracting investment in the AI education market. As long as new businesses can present a compelling value proposition and leverage AI technologies effectively, they can attract the attention of tech investors.
In conclusion, the funding secured by Preply and the growth in the AI language learning market provide ample opportunities for new businesses. By embracing AI, offering personalized learning experiences, and tapping into investor interest, entrepreneurs can enter this market with confidence and potentially disrupt the language learning industry.
Article First Published at: https://www.cnbc.com/2023/07/19/ukrainian-founded-preply-bags-70-million-for-ai-assisted-language-app.html
