Babbel, a Germany-based language learning app developer backed by information services provider Relx, plans to raise over €180m ($214m) in its initial public offering, Reuters reported on Tuesday.
The IPO is set to take place on the Frankfurt Stock Exchange later this year and could value the business at between $1.2bn and $2.4bn, according to sources familiar with the deal. BNP Paribas, Morgan Stanley, Citi and Berenberg will underwrite the offering.
Babbel has built an online platform where users can learn 14 different languages through guided courses and live group classes. It has sold more than 10 million subscriptions and generated just under $180m of revenue in 2020.
The company said it will use the IPO proceeds to add new learning experiences to its services and enter new markets. It will also look to settle claims made under its existing employee incentive schemes.
Babbel has raised at least $34.2m of funding since it was founded in 2007. It closed a $22m series C round in 2015 led by Scottish Equity Partners that included Relx, then known as Reed Elsevier, as well as communications technology producer Nokia and financial services firm IBB Beteiligungsgesellschaft’s subsidiary, VC Fonds Technology Berlin.
Nokia Growth Partners (NGP) and Reed Elsevier Ventures backed the round on behalf of Nokia and Reed Elsevier respectively, NGP having since been spun off as an independent venture capital firm.
Reed Elsevier had already led a $10m series B round for Babbel in 2013 that also featured NGP, VC Fonds Technology Berlin and Kizoo Technology Ventures. The company had also received $2.2m in series A funding from Kizoo and VC Fonds in 2008.