- IFC, EBRD provide a $10 million co-investment alongside Horizon Capital to Preply, a global EdTech company specializing in online language learning
- The new funds, part of a capital raise led by Horizon Capital in June 2023, will support future R&D and product development by the company and help bolster Ukraine's tech sector
Kyiv, Ukraine, Dec 11, 2023 — IFC and the European Bank for Reconstruction and Development (EBRD) today announced a new investment in Ukrainian-founded Preply, a leading global online language learning platform, to help bolster Ukraine's tech sector and pave the way for more innovative solutions, aiding economic recovery.
IFC and EBRD are collectively investing $10 million in partnership with Horizon Capital, a prominent growth equity fund manager in Ukraine and Moldova, and a longstanding client of both IFC and EBRD. This investment is part of a $70 million funding initiative led by Horizon Capital. The influx of capital will empower Preply to expand its research and development initiatives, integrate artificial intelligence to enhance the learning experience, and introduce new product lines. With a global reach, the company links approximately 40,000 tutors with the world's largest interactive language learning community.
Kirill Bigai, Co-Founder and CEO of Preply, said: "It is 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. The additional funds will enable us to extend our leadership in the category through AI-powered human tutors, providing a learning experience which is quickly becoming a game changer. Though the team today is truly global, as a Ukrainian-founded company with significant R&D in Ukraine, this is a milestone to be celebrated. One that echoes the resilience and determination of the Ukrainian tech sector and all Ukrainians."
"Ukraine's tech sector has demonstrated remarkable resilience and growth amid unprecedented challenges," said Lisa Kaestner, IFC's Country Manager for Ukraine and Moldova. "IFC is committed to supporting the sector and innovative companies like Preply, which are leveraging technology to expand access to services, while also boosting the country's economy."
"This investment will contribute to the resilience of the private equity market in Ukraine, and growth of an innovative and high-potential global tech business with significant R&D in Ukraine. We are proud to work alongside our long-standing client Horizon Capital and our partners at IFC to support Preply to continue providing its vital services and develop new educational products amidst the ongoing war," said Holger Muent, EBRD Head of Telecommunications, Media and Technology.
Despite Ukraine experiencing a drastic 29.1 percent drop in its GDP in 2022, its technology sector generated a remarkable $7.3 billion in annual export earnings, exceeding expectations and providing crucial support to the country's economy. New investments are crucial for businesses and job creation in Ukraine's high-risk environment.
The World Bank Group is a key partner of Ukraine, helping over 13 million Ukrainians through initiatives that support businesses, public services, wages, schools, and hospitals. IFC's ERA program aims to support Ukraine's private sector, while ensuring access to critical goods and services.
About Preply
Preply is an online language learning marketplace, connecting tutors to hundreds of thousands of learners in 180 countries worldwide. More than 40,000 tutors teach over 50 languages, powered by a machine-learning algorithm that recommends the best tutors for each learner. Founded in the United States in 2012 by three Ukrainian founders Kirill Bigai, Serge Lukyanov, and Dmytro Voloshyn, Preply has grown from a team of 3 to a company of over 600 employees of 62 different nationalities with offices in Barcelona, New York, and Kyiv.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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For more information about Preply, visit: www.preply.com
For more information about EBRD, visit: www.ebrd.com
