Leta’s portfolio company Novakid raises $4.25M in Series A financing
01 December 2020Novakid, an emerging EdTech brand reinventing learning English as a second language for children ages 4-12 around the globe, raised $4.25 million in Series A round from a group of US, Asia and Europe-based investors. The financing round is led by a Hungary-based PortfoLion (part of OTP, a leading banking group in Eastern Europe) and joined by a prominent EdTech-focused US fund LearnStart (part of LearnCapital VC family, which over the course of past years backed a number of notable companies, among them VIPKID and Brilliant.org), as well as renowned firms TMT Investments and Xploration Capital. Both seed investors, LETA Capital and South Korea-based BonAngels, took part in this financing round.
“Novakid is reinventing English learning for kids in countries where English is not a primary spoken language. There English would usually be taught as an abstract subject, with focus on grammar and with little live practice offered. Novakid on the other hand, implements a unique format that combines a highly-interactive digital curriculum with individual live tutor sessions where students & tutor only speak English for a 100% language immersion,” said Max Azarow, Co-founder and CEO, Novakid.
Alexander Chachava, Managing Partner at LETA Capital, commented: “We as a VC fund with entrepreneurial roots always pay attention to several qualitative factors — how a company is facing difficulties and chasing opportunities. Novakid has shown extreme growth in these challenging times, it operates in over 30 countries around the world now, and I’m sure will extend its presence. We believe Novakid stands out by focusing specifically on children, using sophisticated tech platform and employing expert methodologists to design unique gamified lessons which are both fun and efficient.”
“Novakid’s learning platform innovations include digital-only curriculum, virtual 360 degrees tours, in-lesson games, creative homework tasks and other features driving young student engagement,” said Dmitry Malin, Co-founder and COO, Novakid. “Our platform emphasizes personalisation and AI-assisted data extraction and analysis for the best learning experience.”
Aurél Pasztor, Partner at PortfoLion, commented: "Novakid attracted investor attention due to its excellent traction, which resulted in over 500% growth year-on-year both in terms of number of students and in terms of revenue. Other attractive points were strong customer retention, international business footprint and a solid monetization via paid subscriptions."
"Worldwide, the COVID-19 pandemic has proven to be a turning point for the demand for online language learning, and rapid growth is expected over the next 5 years with CAGR of 11-14%. Novakid offers an excellent alternative to brick and mortar language schools. Its online learning platform is a more attractive product to digitally-native generation of kids, while keeping them and their parents safe," comments Don Burton, Managing and Founding Partner at LearnStart.
Incorporated in the US with development and customer support offices around Europe with over 150 highly qualified staff, Novakid will use proceeds from Round A to support its stellar growth by fostering marketing activities and further product innovation.