Novakid Acquires EFL App Lingumi to Expand Global Child English Education
Novakid, an online English education platform for children, has completed a significant acquisition of UK-based EFL app Lingumi. This strategic move aims to extend Novakid's reach to hundreds of thousands of users, bolstering its mission to deliver top-notch English education to young learners worldwide. Founded in 2017, Novakid has experienced rapid growth, securing $35 million in a Series B funding round and achieving profitability in 2023. With a presence in over 50 countries, Novakid currently serves more than 70,000 active users through its 25-minute online classes conducted by trained educators.
On the other hand, Lingumi, established in 2016, specializes in AI-assisted interactive lessons catering to children aged 2-6 and has amassed a user base exceeding 2 million across Asia. Notably, 70% of its paying users continue their lessons after 12 months, showcasing its effectiveness. Through this acquisition, Novakid plans to integrate Lingumi's technology and user base, creating a comprehensive learning ecosystem blending AI tools, self-paced apps, and live online classes facilitated by native English teachers.
Max Azarov, the CEO and co-founder of Novakid, underlines the potential of this merger to provide free, high-quality English education from an early age, thereby expanding access for children globally. While the financial details of the deal remain undisclosed, it encompasses the separation of Lingumi's China business, which will operate independently. Additionally, Toby Mather, CEO of Lingumi, along with a team of eight, will join Novakid to spearhead a new division, Novakid Junior. Existing Lingumi customers will continue to receive services, and Novakid users can anticipate the launch of a new self-led learning product by early 2025.
Key Takeaways
- Novakid's acquisition of UK-based EFL app Lingumi is set to expand its user base to hundreds of thousands, furthering its mission of providing accessible English education for young learners globally.
- Novakid, founded in 2017, offers 25-minute online English classes for children and achieved profitability in 2023.
- Lingumi, renowned for its AI-assisted interactive lessons for ages 2-6, boasts over 2 million users, with a significant retention rate of 70% for paying customers.
- The deal encompasses the integration of Lingumi's UK team and technology into Novakid, with the company's China business maintaining its independence.
Analysis
The acquisition of Lingumi by Novakid is poised to expedite the global expansion of the latter, particularly in Asia, where Lingumi has established a strong user base. This merger will enhance Novakid's technological capabilities and user engagement, positioning it as a frontrunner in early childhood English education. In the short term, the acquisition could fuel a surge in Novakid's revenue, driven by heightened user acquisition and cross-selling opportunities. In the long term, the fusion of Lingumi's AI technology and Novakid's live classes may pave the way for a robust, scalable education platform, attracting more investment and potentially leading to further acquisitions or partnerships. Lingumi opting for the independence of its China business suggests a strategic concentration on local regulations and market intricacies.
Did You Know?
- EFL (English as a Foreign Language): EFL refers to the teaching and learning of English by non-native speakers in countries where English is not the primary language. This contrasts with ESL (English as a Second Language), which is for non-native speakers in countries where English is the primary language. EFL apps like Lingumi focus on aiding children in non-English-speaking countries to develop English language skills.
- AI-assisted interactive lessons: These are educational sessions that leverage artificial intelligence to personalize and enhance the learning experience. AI can adapt to the learner's pace, provide real-time feedback, and offer customized content based on the child's progress. Lingumi's incorporation of AI in its lessons is a pivotal element contributing to its effectiveness and popularity among young learners.
- Spinning out a business: This term denotes the process of hiving off a segment of a company into a standalone entity. In this scenario, Lingumi's China business was spun out, indicating that it will operate independently from the rest of Lingumi, which is now under the fold of Novakid. This strategy enables focused management and growth opportunities for the spun-out business, while the parent company can integrate the remaining assets into its operations.