Preply Raises $150 Million In Series D Funding Round

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Preply has raised $150 million in its Series D funding round, led by WestCap, achieving a $1.2 billion valuation and unicorn status. Funds will primarily support AI advancements, team expansion in product and engineering, and global scaling to reach more learners and tutors.

Preply’s Series D round secured $150 million, bringing the company’s total funding to approximately $299 million to $320 million across all rounds. The investment values Preply at $1.2 billion, a substantial increase from its prior valuation of around $415 million following the 2023 Series C extension. This marks Preply as a new entrant in the unicorn club within the edtech space, highlighting investor optimism in its hybrid human-AI learning model.

WestCap, a growth equity firm managing over $6 billion in assets, led the round, drawing on its experience with companies like Airbnb in guiding high growth firms toward potential public offerings. Other participants include Horizon Capital (a repeat investor from prior rounds), the EBRD, and Índico Capital Partners, adding a mix of strategic and regional expertise to support expansion. Goldman Sachs International served as the sole placement agent.

The capital injection is earmarked for enhancing AI and data driven features, such as automated lesson summaries, homework assistance, and improved tutor learner matching algorithms. Preply plans to bolster its product and engineering teams, with a focus on hiring AI specialists to amplify human-led tutoring. This aligns with broader industry trends toward AI integration, while maintaining a core emphasis on personalized, live instruction. Additionally, the funds will fuel global acceleration, aiming to connect more of its 100,000 tutors with learners worldwide.

Preply has demonstrated robust growth, achieving EBITDA profitability for the past 12 months and tripling its bookable tutors since the Series C round. The platform now supports over 40 additional languages, expanding its appeal in a market where English remains dominant but demand for languages like Japanese, Arabic, and Korean is rising rapidly. With 750 employees across offices in New York, Barcelona, and London, Preply operates in a competitive landscape alongside players like Duolingo, Babbel, and italki.

Revenue estimates for 2026 suggest over $120 million, building on a 10x increase over the past five years and 50% gross merchandise value growth from October 2024 to October 2025. This positions Preply well in an online language learning market projected to grow from $24.39 billion in 2026 to $50.82 billion by 2031 at a 15.83% CAGR.

While the funding signals strong momentum, Preply faces competition from AI first platforms like Duolingo, which reported $748 million in 2024 revenue and 8.6 million paid subscribers. Balancing AI enhancements with human tutoring could be key to differentiation. Looking ahead, the company is exploring public market options, supported by WestCap’s IPO expertise, though no timeline is set. Overall, this round underscores Preply’s trajectory toward becoming a leader in hybrid edtech solutions.

Preply, a prominent player in the online language learning marketplace, has marked a significant milestone with its Series D funding round of $150 million. This infusion of capital, led by WestCap and supported by investors including Horizon Capital, the EBRD, and Índico Capital Partners elevates the company’s valuation to $1.2 billion, nearly tripling its previous figure and granting it unicorn status in the edtech sector. Founded in 2013, Preply connects learners with over 100,000 tutors across more than 50 languages, serving users in 180 countries through a platform that emphasizes personalized, one on one sessions amplified by AI tools. With 750 employees distributed across offices in Barcelona, London, and New York, the company has achieved EBITDA profitability for the past 12 months, a testament to its operational efficiency and market fit.

This latest round brings Preply’s total funding to between $299 million and $320 million, building on a history of progressive investments that have fueled its expansion. Prior to this, the company completed a Series C extension in 2023, raising $70 million to bring that round’s total to $120 million, with participation from Horizon Capital, Reach Capital, Hoxton Ventures, and Orbit Capital. Earlier rounds include a $101 million Series C in January 2025 and various seed and Series A/B investments dating back to 2012, involving backers like Owl Ventures, Techstars Berlin, and Full In Partners. The valuation surge from approximately $415 million post 2023 to $1.2 billion reflects investor confidence in Preply’s ability to scale amid a burgeoning online language learning market.

The strategic deployment of the $150 million will focus on three core areas: advancing AI and data capabilities, expanding product and engineering teams, and accelerating global growth. Preply is already integrating AI for features like lesson summaries, homework support, and algorithmic matching between tutors and learners, positioning it as a hybrid model that combines human expertise with technological efficiency. This approach differentiates it from purely app based competitors, emphasizing live, personalized instruction. The company has tripled its bookable tutors and added over 40 new languages since the Series C, contributing to a 50% gross merchandise value increase from October 2024 to October 2025. Revenue estimates for 2026 exceed $120 million, following a 10x growth over the past five years and projections ranging up to $500 million-$1 billion in some analyses, though these vary. User engagement has surged, with over 30% year over year growth in tutors and students, and lesson volumes up by more than 40%.

In the broader market context, the online language learning sector is experiencing rapid expansion, valued at $24.39 billion in 2026 and expected to reach $50.82 billion by 2031 at a 15.83% CAGR, driven by globalization, AI adoption, and demand for flexible education. Alternative projections suggest growth to $116.88 billion by 2033 at 17.9% CAGR, with a shift toward AI first solutions. English dominates, with a $43.51 billion market in 2025 growing at 22% annually, but emerging languages like Japanese (33% learner growth), Arabic (15%), and Korean (13%) are gaining traction on platforms like Preply. Preply’s marketplace model, onboarding freelance tutors and using algorithms for matching, competes with fragmented players in a market trending toward consolidation.

Key competitors include Duolingo, which holds a 34% revenue share with $748 million in 2024 revenue and 8.6 million paid subscribers, focusing on freemium, mobile first gamification. Babbel follows with 19% share through structured conversational courses, while Rosetta Stone emphasizes immersive tools. Other rivals like italki, Lingoda, Cambly, Busuu, and Memrise differentiate via live classes, AI personalization, or niche tutoring. Preply’s edge lies in its tutor marketplace, supporting 3.8 million organic monthly visitors in 2024 and blending human interaction with AI for higher retention.

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Looking forward, Preply’s leadership, including CTO Dmytro Voloshyn, views this round as a stepping stone, with the company already profitable yet raising to seize larger opportunities. Potential challenges include intensifying AI competition and maintaining differentiation in a market where top players like Duolingo drive innovation through adaptive learning and global expansion. However, with WestCap’s guidance, Preply is positioning for further scaling, including possible IPO considerations.

Preply Funding History Overview

Market Projections and Competitor Comparison

This funding round not only solidifies Preply’s financial foundation but also sets the stage for transformative growth in a dynamic edtech landscape.

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