Language learning marketplace Preply is now valued at 1.2 billion dollars. This follows a 150 million dollar Series D funding round, marking a new chapter for the 14-year-old company. Its previous investors include Horizon Capital, Hoxton Ventures, Owl Ventures, and Techstars Berlin.
While Preply has connected language learners with tutors since 2013, it has now been EBITDA profitable for twelve months. Not coincidentally, it has also increased its integration of artificial intelligence to support its 100,000 tutors and continue scaling its business.
This is a fine line to walk. Other language learning platforms have faced backlash after declaring a shift to become AI-first companies. Tutors have been a key differentiator for Preply, and the company is adamant it will not replace them. However, AI can bring consistency to a model that relies on self-employed instructors. According to Preply CEO Kirill Bigai, the future of learning is going to be human-guided and amplified by AI.
Bigai states that Preply already applies AI to features like lesson summaries and homework, and also to match learners with the tutors that best fit their needs. To further develop these capabilities, Preply is now hiring AI talent across its four offices in Barcelona, London, New York, and Kyiv. The company has maintained its office in Kyiv despite the Russian invasion.
Although Preply is headquartered in the United States, where it got its start, CEO Kirill Bigai and his cofounders are Ukrainian. The company has been actively supporting Ukraine in several ways since the war began, including through its role as an employer. Bigai said the company is very committed to its Ukrainian office.
Out of Preply’s 750 employees, approximately 150 work from Kyiv. This is despite Russian strikes regularly forcing them into shelters and causing power outages that have made the current freezing winter particularly challenging. Bigai explained that their office has different generators to provide electricity, internet, and heat, and it is open 24/7 so any Ukrainian team member can come to the office at any time.
Bigai expressed deep admiration for his Ukrainian employees, noting that going through such challenging times builds significant resilience and creativity. He added that the fact the company went through this experience, and how so many people helped others, made Preply stronger, more resilient, and more creative.
With this new funding, the edtech company has joined the growing cohort of unicorns with Ukrainian roots, which includes other companies like Grammarly. It may also follow in the footsteps of companies like Airbnb, whose former CFO led this Series D round through his growth equity firm, WestCap. While Bigai said Preply has no timeline or concrete plans for an initial public offering yet, he noted WestCap’s phenomenal experience in taking companies public, which is something Preply will continue to consider.