The global language learning platform Preply has achieved a significant milestone, reaching a valuation of $1.2 billion following a successful $150 million Series D funding round. This latest capital injection propels the company into the exclusive ‘unicorn’ club, marking a pivotal moment for the enterprise that has been connecting students with language tutors for over a decade. The funding round saw participation from prominent investors including Horizon Capital, Hoxton Ventures, Owl Ventures, Techstars Berlin, and was notably led by WestCap, the growth equity firm founded by former Airbnb CFO Laurence Tosi.

A New Milestone in the Online Learning Ecosystem

Preply’s journey to unicorn status underscores the dynamic evolution of the online education technology (EdTech) sector. The achievement signifies not only the company’s robust financial health, demonstrated by its twelve consecutive months of EBITDA profitability, but also the sustained global demand for accessible and effective language acquisition. The EdTech market, which experienced an unprecedented boom during the COVID-19 pandemic, continues to attract substantial investment as digital learning solutions become increasingly sophisticated and integrated into daily life. For Preply, this valuation validates its distinctive hybrid model, which combines the personalized touch of human instruction with the scalability and efficiency of advanced artificial intelligence.

The term "unicorn" in the startup lexicon refers to a privately held company valued at $1 billion or more. Attaining this status is a hallmark of rapid growth and market disruption, often signaling a company’s potential for even broader impact and future public offerings. Preply’s entry into this elite group places it among a select cohort of innovative firms that are reshaping industries worldwide, particularly in the competitive landscape of digital education.

The Evolution of Language Learning and Preply’s Origins

Preply was founded in 2013 with a vision to democratize language education by making personalized tutoring accessible to a global audience. Originating from Ukraine, its co-founders, including CEO Kirill Bigai, established the company with an initial focus on connecting students with tutors via an online marketplace. In its early days, the platform navigated the burgeoning EdTech landscape, competing with established language learning apps and traditional educational institutions. The company’s initial strategy emphasized the human connection, allowing learners to choose from a vast pool of qualified tutors based on their specific needs, learning styles, and budget. This model offered a stark contrast to the then-dominant app-based learning solutions that often lacked personalized interaction.

Over the past decade, the language learning market has undergone a dramatic transformation. From the early days of CD-ROM courses and basic online exercises, the industry has rapidly adopted sophisticated digital tools. Massive Open Online Courses (MOOCs) emerged, followed by gamified mobile applications like Duolingo and Babbel, which made language learning engaging and accessible to millions. However, a persistent challenge remained: the difficulty of achieving true fluency without direct, interactive practice with a native speaker. Preply carved out its niche by bridging this gap, providing a platform where learners could engage in real-time conversations, receive immediate feedback, and build confidence – aspects often missing from self-study applications.

Navigating the AI Frontier: Augmentation, Not Replacement

A crucial element of Preply’s recent growth and strategic direction has been its significant enhancement of artificial intelligence capabilities. This integration has been carefully orchestrated to support its extensive network of 100,000 tutors and facilitate continued scaling, rather than replacing human educators. CEO Kirill Bigai articulated this philosophy, stating that the future of learning "is going to be human-guided and amplified by AI." This approach seeks a delicate balance, leveraging AI for efficiency and personalization while preserving the invaluable human element of teaching.

The discussion around AI’s role in education has been a subject of considerable debate. Companies like Duolingo, for instance, have faced scrutiny and even backlash for public statements hinting at an "AI-first" strategy, raising concerns about potential job displacement for human contractors. Preply has consciously positioned itself differently, affirming its commitment to its tutors. The company employs AI across several critical functions:

• Personalized Matching: Advanced algorithms analyze learner profiles and tutor expertise to facilitate optimal pairings, ensuring students connect with instructors best suited to their individual goals and preferences.
• Enhanced Learning Tools: AI assists in generating lesson summaries, creating customized homework assignments, and providing analytical insights into student progress, allowing tutors to tailor their instruction more effectively.
• Operational Efficiency: AI tools streamline administrative tasks for tutors, freeing up their time to focus on teaching.

By integrating AI as an assistive technology, Preply aims to elevate the quality and consistency of its tutoring services. This strategy not only improves the learning experience for students but also empowers tutors with advanced tools, enhancing their productivity and pedagogical impact. The company is actively recruiting AI talent across its global offices in Barcelona, London, New York, and notably, Kyiv, to further develop these capabilities.

The Ukrainian Heart of Innovation and Resilience

While Preply is headquartered in the U.S., its foundational roots are deeply embedded in Ukraine, with its co-founders being Ukrainian. The company has maintained a steadfast commitment to its home country, particularly in the face of the ongoing full-scale Russian invasion that began in February 2022. This commitment is not merely symbolic; approximately 150 of Preply’s 750 employees continue to work from Kyiv, a city that has endured relentless attacks, power outages, and the severe challenges of war.

The decision to maintain and support its Kyiv office despite the geopolitical turmoil highlights a profound sense of corporate responsibility and national solidarity. Preply has implemented extensive measures to ensure the safety and operational continuity for its Ukrainian team members. Its Kyiv office is equipped with generators, ensuring a continuous power supply and internet connectivity, and remains open 24/7, providing a warm and secure environment for employees who might otherwise face freezing conditions or lack of resources at home. This proactive support system allows the team to continue their work amidst unimaginable adversity.

CEO Kirill Bigai has repeatedly expressed deep admiration for the resilience and creativity demonstrated by his Ukrainian employees. He noted that navigating the realities and uncertainties of war has, paradoxically, strengthened the company as a whole. This period of extreme challenge has fostered an environment of heightened adaptability, problem-solving, and mutual support among the team, contributing to a more robust and innovative organizational culture. Preply’s story, in this regard, resonates as a powerful testament to Ukrainian perseverance, mirroring the broader narrative of a nation determined to thrive despite conflict. This dedication to its Ukrainian heritage also serves as an inspiration, showcasing how businesses can not only survive but also innovate and grow even under the most trying circumstances.

Strategic Growth and Future Prospects

Preply’s new funding round, led by WestCap, signals strong investor confidence not only in its current business model but also in its future growth trajectory. WestCap, with its deep experience in scaling tech companies and guiding them through public offerings (notably with Airbnb), brings invaluable strategic insight to Preply. While CEO Bigai has stated that there are no immediate timelines or concrete plans for an Initial Public Offering (IPO), he acknowledged WestCap’s "phenomenal experience" in taking companies public, indicating that such a move remains a consideration for the future.

The company’s unicorn status also places it within a growing cohort of successful tech ventures with Ukrainian roots that have achieved global recognition. Notable examples include Grammarly, the AI-powered writing assistant, and Fintech-IT Group. These companies collectively underscore Ukraine’s enduring prowess as a hub for technological innovation and entrepreneurial talent, even as the nation faces ongoing conflict. Their success stories send a powerful message to the global investment community about the potential and resilience embedded within the Ukrainian tech ecosystem.

Looking ahead, Preply is poised to further consolidate its position in the competitive EdTech landscape. Its hybrid model, combining human expertise with AI amplification, offers a compelling value proposition that differentiates it from purely app-based solutions and traditional tutoring services. The company’s commitment to continuous innovation, particularly in AI, coupled with its robust operational resilience demonstrated through its Ukrainian operations, positions Preply for sustained growth and potentially, an expansion of its global footprint and service offerings. As the world becomes increasingly interconnected, the demand for effective language learning solutions will only intensify, and Preply appears well-equipped to meet this evolving need.