Preply Secures $70 Million To Expand Into AI

Nowadays, it seems like every company — big and small — is looking into the use of artificial intelligence (AI). Preply, a language learning platform connecting students with tutors, is no exception.

The U.S.-based company, which was founded in Ukraine, secured $70 million in funding to accelerate its use of AI. 

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Details Of The Deal

The deal was made possible by issuing new equity and debt.

The equity component of the funding was spearheaded by Horizon Capital, a venture capital company with a keen interest in investing in budding entrepreneurs, particularly those from Ukraine. Other supporters included Reach Capital and Hoxton Ventures.

This funding follows a $50 million Series C round that Preply raised the previous year, bringing the total amount the company has raised to more than $170 million.

The Present And Future Of Preply

Preply operates as a marketplace platform, linking individuals with personal tutors for learning new languages. Each tutor on Preply provides a profile for potential students to view and establishes an hourly rate for their lessons. Preply collects a portion of the tutors' hourly fees.

Large corporations like Datadog, GroupM and Bain & Co. Inc. also use Preply's services to enhance their teams' proficiency in foreign languages. Despite not yet reaching profitability, the company has seen significant growth in revenue — a tenfold increase over the past three years.

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According to Kirill Bigai, Preply's co-founder and CEO, the company will use the funds to "extend our leadership in the [online language learning] category through AI-powered human tutors, providing a learning experience which is quickly becoming a game-changer."

Preply: Taking On The Competition With AI

Preply has revealed its use of machine learning to optimize the matching process between students and tutors. The company is advancing its services by incorporating more AI features, including an AI assistant that helps tutors formulate exercises, clarify grammar rules and start discussions.

This innovation arrives as Duolingo, a market rival of Preply, has been employing OpenAI's GPT language processing tool to augment the customization of its app for users. 

Even with funding hard to come by, Preply has successfully secured the funds it needs to integrate AI into its already popular platform. 

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