Lesson Nine, a Germany-based provider of the Babbel online learning system for foreign languages, has raised $10m in its series B round from a consortium including publisher Reed Elsevier and phone maker Nokia’s corporate venturing units.
Alongside Reed Elsevier Ventures, which led the round, and Nokia Growth Partners in the B round were local bank IBB Beteiligungsgesellschaft, through its Fonds Technologie Berlin venture unit, and venture capital firm Kizoo Technology Ventures founded by serial entrepreneurs Michael and Matthias Greve.
In 2008, Lesson Nine raised $2.2m in equity and debt from Kizoo and IBB.
Lesson Nine recently bought competitor PlaySay.
Tony Askew, partner at Reed Elsevier Ventures, said: “The start-up has grown rapidly to over 15 million users and has built a large subscriber base which generates positive cash flow. Babbel’s excellent mobile and online products consistently rate as consumer favorites and Babbel is very well-positioned for explosive growth in the rapidly growing category of mobile and online language learning.”
Walter Masalin, principal at Nokia Growth Partners, added: “As mobile transforms the way people learn, Babbel’s flexible and efficient solution supporting multiple platforms means it is well positioned to capitalize on this trend.”