Preply, the language app known for its live tutors, closes out Series C at $120M and doubles down on AI
Summary
Preply a company built around human tutors, and differentiated from the likes of Duolingo, which approaches language learning with no live tutelage at all is planning to use the funding to double down on artificial intelligence, specifically using the technology to scale the experience.While human-led learning will always be at Preplys core, the company is using AI as an engine to scale learning, improve access and focus on teaching like never before, the company said in an announcement. This is a natural extension of Preplys DNA in machine learning that it has always used to pair tutors and learners.The company was originally founded in Ukraine and has been seen as a leading example of the tech prowess coming out of that country, even as it continues to grapple with a painful, destructive war with Russia.The last few years, including those that have been war-torn, has seen a big boom in Preplys business, with sales growing tenfold in the last three years, and a boost in its B2B business on the back of 200 new contracts in the last 12 months. At a time when funding has been very tight across so many other areas of the tech sector, AI has been one of the few bright spots, an area where investors are still largely willing to make big bets.Its a great achievement to have secured this capital injection while we still have plenty of runway and the majority of the previous raise in the bank; a result of rigorous capital efficiency and a laser focus on performance, said Kirill Bigai, co-founder and CEO of Preply, in a statement.The additional funds will enable us to extend our leadership in the category through AI-powered human tutors, providing a learning experience that is quickly becoming a game changer. Preply is one of the fastest-growing global edtech brands, now leading the live language learning category. With a culture of operational excellence and superb performance over the past few years, we are proud to support them as they enter the next stage of growth.Preply is the clear leader in live language learning, a sector where we have both appetite and deep experience, added James Kim, a partner at Reach Capital.