The European Bank for Reconstruction and Development has announced a $20m equity investment in Preply, an EdTech company founded by Ukrainian entrepreneurs that operates a global online marketplace for language learning. The investment forms part of a broader financing round and is aimed at accelerating the company’s technological development and international expansion.
The EBRD notes that its support for Preply has strategic importance for Ukraine. According to Holger Muent, Director of the bank’s Telecommunications, Media and Technology department, the transaction contributes to the development of Ukraine’s innovation ecosystem, the creation of highly skilled jobs, and helps a technology company of Ukrainian origin compete successfully on the global market.
Preply plans to allocate the raised funds primarily to strengthening research and development activities in Ukraine. A key focus will be the implementation and advancement of artificial intelligence–based solutions to further personalize learning, as well as scaling the business and operations across global markets.
Separately, the EBRD highlights that equity investments amid a subdued private-capital market in Ukraine have a systemic effect: they enhance the resilience of the country’s financial markets and support Ukraine’s position as a hub for technological talent despite the ongoing war.
The bank’s investment coincided with a major financing round by the company itself. Preply recently raised $150m in a Series D round, increasing its valuation to $1.2bn and bringing total funding raised to nearly $300m. The round was led by investment and operating firm WestCap, which manages more than $6bn in assets, with Goldman Sachs International acting as the sole placement agent.
Preply said the new capital will be used to advance AI and data initiatives, expand its engineering and development teams, and further improve the quality and scalability of the service. Co-founder Kyrylo Bigai noted that the investment will enable the company to continue developing solutions at the intersection of human learning and artificial intelligence, helping people worldwide learn, communicate and succeed regardless of location.
The company also reported significant improvements in its financial performance over the past 12 months: Preply has reached positive EBITDA, reflecting increased operational efficiency and business maturity.
For its part, the EBRD remains the largest institutional investor in Ukraine. Since the start of Russia’s full-scale invasion in 2022, the bank has channelled more than €8.5bn into the country, supporting energy security, critical infrastructure, the food sector, trade and private business.
Preply was founded in Ukraine in 2012 and has since grown into a global online learning platform. Today, the service offers instruction in more than 90 languages, connects millions of users and over 100,000 tutors worldwide. Previously, the company raised significant funding, including $50m in 2022 from OWL Ventures, Diligent Capital and Hoxton Ventures, followed by an additional $70m in 2023 in a round led by Horizon Capital.
