Coursera Prepares for Initial Public Offering

Coursera, a leading online learning platform, is reportedly preparing to submit its initial public offering (IPO) paperwork tomorrow. This move follows discussions with underwriters that began last year, signaling a formal step towards becoming a publicly traded company.

Company Valuation and Financial Standing

Founded in 2012 and headquartered in Mountain View, California, Coursera was last valued at $2.4 billion during a Series F funding round in July 2020. More recent estimates, as reported by Bloomberg, place the company’s valuation at $5 billion.

The company’s cash reserves currently stand at approximately $300 million, a figure comparable to Chegg’s balance prior to its own IPO. Jeff Maggioncalda, CEO of Coursera, previously indicated the company’s intention to pursue an IPO in the future.

Expansion and New Initiatives

Coursera experienced significant growth during the pandemic. Similar to Udemy, another online course provider planning to go public, it expanded its business to include an enterprise division.

Key initiatives include Coursera for Campus, a platform designed to assist colleges in offering online courses – with or without academic credit – and integrated assessments. Currently, over 3,700 institutions worldwide utilize this software.

The financial impact of Coursera for Campus remains undisclosed, however, Udemy for Business is reportedly generating close to $200 million in annual recurring revenue.

Commitment to Social Responsibility

In February, Coursera achieved B Corp. certification, demonstrating a commitment to high standards of social and environmental performance. The company also transitioned to a public benefit corporation structure.

Venture Capital Support

GSV, a venture capital firm specializing in edtech investments, made its largest initial fund investment in Coursera. GSV recently announced a new $180 million Fund II.

Edtech IPO Trend

The timing of Coursera’s planned IPO aligns with a favorable market for edtech companies and the continued prominence of remote education. Recent public debuts in the sector include Nerdy and Skillsoft, both of which utilized special purpose acquisition companies (SPACs).

Should Coursera successfully complete its IPO, it will join established publicly traded edtech companies such as 2U, Chegg, K12 Inc, and Zovio Solutions.

Coursera has not issued a comment regarding these developments.

Note: A previous version of this article incorrectly stated that Skillshare had gone public. The correct company is Skillsoft. This has been updated.

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