Introduction
Preply has emerged as a leading force in the online language learning space, providing a dynamic platform that connects students with expert tutors across the globe. With a network of over 40,000 tutors offering lessons in more than 50 languages, the platform has successfully redefined how individuals approach language acquisition. Unlike traditional language courses, Preply offers personalized, one-on-one lessons tailored to each learner’s unique goals, proficiency level, and schedule. By integrating advanced machine-learning algorithms, Preply ensures that students are matched with the most suitable tutors, fostering an engaging and effective learning experience.
Operating in 180 countries, Preply makes language learning accessible, flexible, and affordable for a diverse range of students. Whether learners aim to improve their conversational skills, prepare for exams, or acquire a new language from scratch, the platform offers a broad selection of tutors who specialize in various teaching methodologies, regional accents, and cultural backgrounds. By combining cutting-edge artificial intelligence with human expertise, Preply empowers students to achieve fluency on their terms, making learning a truly global and interactive experience.
From Startup to Global Leader: The Preply Journey
Preply was founded in 2012 by Ukrainian entrepreneurs Kirill Bigai, Dmytro Voloshyn, and Serge Lukyanov. Initially conceived as a tutoring marketplace focused on standardized test preparation (SAT and ACT), the company quickly pivoted to language learning due to the surging global demand for online language education. The official launch of Preply.com in 2013 marked the beginning of its expansion beyond Ukraine.
By 2014, the company had secured its first major investment—an angel investment of $180,000—which enabled Preply to expand operations to Belarus, Russia, Kazakhstan, and Poland. Over the following years, the platform steadily refined its AI-powered tutor matching system, enhancing personalization and improving the overall student experience. As demand grew, Preply established offices in Barcelona, New York, and Kyiv, employing a diverse team of over 500 professionals across 30 countries. Today, Preply connects hundreds of thousands of learners worldwide, making it one of the most recognizable names in EdTech.
AI-Powered Learning: The Future of Education
Preply has evolved from a simple tutor marketplace into a full-fledged AI-powered learning ecosystem. At the core of this transformation is the integration of artificial intelligence to enhance personalization and engagement. Unlike many other learning platforms that rely solely on pre-recorded lessons, Preply utilizes AI-driven tutor matching, automated lesson planning, and interactive conversation prompts to make learning more dynamic and effective.
The platform’s AI-powered tools assist tutors in optimizing their teaching methods, ensuring that students receive tailored lessons that align with their learning styles and objectives. Features such as real-time performance tracking and personalized assignments provide students with continuous feedback, helping them stay on track toward fluency. However, Preply maintains a firm stance that AI should complement rather than replace human interaction in education. By blending intelligent automation with live tutoring sessions, the platform ensures a balance between technology and the irreplaceable value of human guidance.
Financial Growth and Strategic Investments
Over the years, Preply has attracted significant investor interest, securing over $171 million across multiple funding rounds. These investments have fueled the company’s expansion, AI-driven innovations, and entry into corporate training markets.
Key Investments:
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2015 – Raised $120,000 from Techstars
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2016 – Secured $1.3 million from SMRK VC and other investors
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2018 – Received $10 million in a growth funding round
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2021 – Closed a $35.2 million Series B funding round
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2021 – Raised €29.4 million in additional funding, led by Owl Ventures and Full In Partners
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2022 – Secured $50 million in a growth capital round
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2023 – Extended Series C funding with $70 million, led by Horizon Capital
These financial injections have enabled Preply to expand globally, develop AI-powered learning tools, and strengthen its business model, positioning the company as a major player in the EdTech industry.
A Business Model Built for Growth
Preply operates on a commission-based revenue model, ensuring flexibility for both tutors and students while maintaining profitability. Tutors set their own lesson rates, with Preply taking a commission of 18% to 33% per session. Additionally, the platform applies a markup on tutor rates, balancing affordability for learners with revenue generation.
Aside from its core tutoring model, Preply has successfully expanded into corporate training programs, offering language upskilling for businesses and institutions. This B2B segment is becoming an increasingly significant revenue stream, catering to the growing demand for professional language learning solutions in multinational workplaces.
Strengths and Challenges: A Competitive Landscape
Strengths:
Preply’s greatest strength lies in its scalable marketplace model, which allows for high margins without the need for physical infrastructure. The platform boasts a diverse tutor pool, offering options ranging from budget-friendly to premium educators, accommodating various learning preferences.
Its AI-driven technology enhances the user experience by matching students with the right tutors, personalizing learning paths, and streamlining scheduling. Additionally, Preply’s expansion into corporate and institutional partnerships is proving to be a strategic move, as more businesses seek language training for employees.
Challenges:
Despite its success, Preply faces certain challenges. One key issue is the high commission fees for tutors, which can go up to 33%, leading some educators to explore alternative platforms with lower fees. Another concern is the variable quality of tutors, as the platform does not enforce strict certification requirements, which may affect student learning outcomes. Additionally, Preply’s reliance on freelance tutors introduces the risk of tutor churn, where educators leave for better-paying opportunities, potentially disrupting the learning experience for students.
Opportunities and Threats: The Road Ahead
Opportunities for Growth:
Preply has numerous avenues for expansion, including broadening its subject offerings beyond language learning to include professional skills and test preparation. Further enhancements in AI-driven learning tools, such as automated progress tracking and speech recognition, could improve engagement and retention.
The corporate sector presents a major opportunity, as businesses continue investing in language training for employees. Additionally, expansion into emerging markets in Asia and Africa, where demand for English learning is surging, could significantly increase Preply’s user base.
Potential Threats:
Preply must also navigate potential risks, including regulatory challenges related to labor laws governing freelance tutors. Competition from free language learning platforms like Duolingo and YouTube-based tutoring poses a pricing challenge, particularly in cost-sensitive markets. Furthermore, an economic downturn could impact discretionary spending on education, affecting revenue growth.
Future Outlook: Scaling in the Booming EdTech Market
The global online education market is projected to exceed $350 billion by 2025, presenting significant opportunities for Preply. The company’s future success will depend on three key factors:
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AI-Driven Personalization – Enhancing tutor matching and adaptive learning features
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Monetization Expansion – Introducing certifications, premium memberships, and new revenue streams
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Global Market Penetration – Strengthening presence in non-English speaking regions with high demand for language learning
As Preply continues to scale, potential exit strategies could include an IPO or acquisition by major EdTech companies like Chegg, Pearson, or Duolingo.
Final Verdict: A Leader in AI-Powered Language Learning
Preply has firmly established itself as a top-tier EdTech platform, blending AI innovation with human expertise to create a highly personalized learning experience. While challenges such as high tutor commissions and intense competition remain, the platform’s strengths in technology, global reach, and corporate training solutions position it for sustained growth.
