Duolingo, a US-based language learning platform backed by internet technology conglomerate Alphabet, has completed a $25m series E round led by venture capital firm Drive Capital that valued it at $700m.
Formed as a Carnegie Mellon University project in 2009, Duolingo publicly launched its language education platform two years later and has since accumulated more than 200 million users worldwide.
The company’s technology uses a gamification methodology to aid language learning. It also provides an English language certification test, artificial intelligence-powered chatbots for practice, social features and a more generalised flashcard-based study tool called Tinycards.
The round boosted Duolingo’s total funding to more than $108m, the company said. Alphabet led its $45m series D round in 2015 through CapitalG, the growth capital subsidiary then known as Google Capital.
Existing investors Union Square Ventures, New Enterprise Associates, Kleiner Perkins Caufield & Byers and angel investors Ashton Kutcher and Tim Ferris also took part in the series D round.
Luis von Ahn, Duolingo’s co-founder and CEO, said: “When we started Duolingo five years ago we set out to make language learning free and accessible for everyone in the world. At the time, we thought it would be pretty cool if we could reach one million users
“Our growth since then has significantly surpassed those initial expectations, and this funding will help us bring free education to millions more as we build a sustainable and profitable business.”
Proceeds from the round will support a hiring drive. Duolingo wants to increase its headcount from 95 to 150 by the end of next year, with a view to expanding its engineering, product management and design teams as it focuses on product development.