The tutoring provider Gostudent has to collect a lot of money again in a difficult market environment. The capital wants to use the edtech to expand the range.
The Austrian edtech startup Gostudent has raised the equivalent of 87 million euros (95 million US dollars) in a financing round. According to the company, Gostudent wants to use the money to “promote the integration of AI applications,” among other things. The tutoring startup plans to develop a tutor bot that uses artificial intelligence to support tutoring. The AI should be used, among other things, to learn new languages. Gostudent estimates that the global market for AI in education could grow to $10-20 billion by 2027.
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In addition, the capital increase should support the implementation of an online-offline hybrid model. Gohourt was originally a purely online learning platform. In December 2022, the startup bought the offline tutoring provider Studienkreis. In the future, Gostudent wants to offer both online and offline tutoring, which can also be used in combination. “For example, a family that prefers offline tutoring can switch to online one-on-one tuition during a vacation so that the flow of learning is not interrupted. Or if a child likes to learn English together with other children, but needs individual support in mathematics, we can easily make this possible,” said co-founder Felix Ohswald in the message to the group.
Gostudent: From Whatsapp service to unicorn
According to the company, the new budget is a mixture of equity and debt capital. The money comes from Deutsche Bank, among others. But some investors have also gotten on board – or have increased their previous investments; including Left Lane Capital. The New York-based global venture capital and growth private equity firm investing in consumer-focused internet and technology companies is among Gostudent’s early investors.
Gostudent was founded in 2016. The official founding story goes like this: Felix Ohswald gave his little brother – and later his friends too – math tutoring via Whatsapp. This initially resulted in a Whatsapp service for homework help in 2015, followed a year later by the Gostudent app. Gostudent is now one of the world’s leading tutoring providers and, valued at €3 billion, is Europe’s highest valued edtech company. According to the company, it employs around 1,500 people.
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Source: https://www.businessinsider.de/gruenderszene/business/gostudent-erhaelt-87-millionen-euro-und-will-in-ki-und-offline-nachhilfe-investieren/
