Prep, an edtech startup based in Vietnam focusing on language learning and test preparation, has effectively raised $7 million in Series A funding. The funding round was led jointly by Northstar Ventures, a private equity and venture capital firm, and Cercano Management Asia, a global asset manager.
Prep's recent funding round also saw participation from Touchstone Partners, East Ventures, and Saison Capital. With this injection of capital, Prep intends to grow its team, improve its educational resources, and investigate avenues for expanding its product range and geographical reach. The company's objective is to provide increasingly personalized learning experiences to its expanding user base, all while sustaining profitability.
Investors from Prep's initial seed round have opted to join in this latest funding round, demonstrating ongoing backing for the company's endeavors in growth and expansion. Additionally, other contributors to this funding cycle encompass East Ventures, Touchstone Partners, and Saison Capital, which serves as the venture arm of Credit Saison, a Japanese financial firm.
Tu Pham, CEO of Prep, expressed the company’s vision of providing every learner with a dedicated personal teacher and mentor to assist them in achieving their learning objectives. Despite being only four years old, Prep has managed to attract hundreds of thousands of users, with its proprietary AI technologies like the AI-powered Virtual Speaking and Virtual Writing Rooms enabling rapid scalability and cost-effective education delivery.
Pham emphasized that Prep’s affordable tuition model allows it to serve students in major cities as well as those in underserved Tier 2 and 3 towns and cities. Tu Pham and Nam Tran, the current CEO and CTO of the startup founded the platform in 2020. Prep is an online language learning and test preparation platform that aims to help learners of all ages achieve their full potential. The edtech startup offers personalized study plans, interactive learning content, and AI-powered test and role-playing rooms.
The learning platform incorporates proprietary AI technologies, including virtual speaking and writing rooms, contributing to Prep’s expansion and increased user base. Melvin Hade, Managing Director at Northstar Ventures, highlighted the growing importance of English in Vietnamese higher education and the workforce. Additionally, Hade expressed confidence in Prep’s ability to disrupt the language test prep market in Vietnam and expand its offerings to other languages and countries in the region.
Investors have praised the edtech startup's utilization of technology for improving language learning and standardized test preparation. MJ Yu, Managing Director at Cercano Management Asia, emphasized the company's mission to leverage technology in making quality education more readily available.
Tu Ngo, General Partner at Touchstone Partners, conveyed pride in the early partnership with Prep and reaffirmed their commitment to advancing the company's mission of delivering customized education to every student, regardless of their background. Wesley Tay of East Ventures echoed this sentiment, expressing assurance in Prep's pivotal role in democratizing talent development in Vietnam and Southeast Asia.
