Duolingo is an online education platform that helps users learn one of 30+ languages for free via its bite-sized lessons. While learning a language can be difficult and expensive, the virtual learning startup aims to make it more accessible by providing a fun, free alternative to traditional education.
Per the company’s website, “We believe that anyone can learn a language with Duolingo. Our free, bite-sized lessons feel more like a game than a textbook, and that’s by design: Learning is easier when you’re having fun.”
While the app is free to use, the company is able to generate revenue via ads and its subscription service, Duolingo Plus, which removes ads and provides additional features.
This approach has proven to be attractive to consumers. At the end of 2019, Duolingo announced that it was valued at $1.5 billion after closing its $30 million Series F funding round and has reached 30 million monthly active learners.
General Atlantic Leads Latest Duolingo Funding Round
Since the company’s last round of funding, Duolingo has raised an additional $10 million from General Atlantic, which will take a board observer seat at Duolingo. This new outside investment raises Duolingo’s valuation above the previous $1.5 billion. However, the company did not disclose its specific new valuation.
While it’s unusual for a company to raise a smaller amount of money so soon after a successful round of funding, the online learning startup stated that it simply wanted to bring on a new investor and didn’t need a significant amount of cash as the company is still cash-flow positive.
The edtech company hopes that this partnership with General Atlantic will help the company expand its presence in Asian markets.
Tanzeen Syed, a managing director for General Atlantic, stated that Duolingo has a profitable, efficient business model while maintaining hyper-growth characteristics” and is a “market leader in the language learning space.”
This new influx of cash will help the startup continue to pursue international expansion and support its new learning app for children. The coronavirus pandemic has created a generational opportunity for virtual learning and education technology. Duolingo looks to continue capitalizing on the present opportunity.
Article By: Connor Beam