Riiid Raises $175M to Expand AI Learning Platform Globally

AI's Growing Influence in Education and Riiid's Funding

Riiid co-founder and CEO YJ Jang highlights the increasing impact of Artificial Intelligence on the education sector, as noted in his LinkedIn profile.

The company, focused on developing AI-driven personalized learning solutions – including test preparation – has recently secured significant funding to strengthen its position within this evolving landscape.

Riiid Secures $175 Million Investment

Riiid, headquartered in Seoul, has successfully completed a $175 million funding round.

This equity investment comes solely from SoftBank’s Vision Fund 2.

Edtech's Momentum and Riiid's Expansion Plans

This funding arrives during a period of substantial growth for the edtech industry.

The recent shift towards remote learning, accelerated by the pandemic, has underscored the need for improved educational tools.

Consequently, numerous startups in this sector have attracted considerable investment.

Riiid intends to utilize this investment to broaden its international reach and enhance its product offerings.

Financial Overview and Total Funding

While Riiid has not disclosed its current valuation, this funding round represents its largest to date.

The total funding raised by the startup now amounts to $250 million, a notable figure within the edtech space.

Santa: Riiid's Flagship Test Prep Application

Riiid initially gained recognition through Santa, a test preparation application.

Santa caters to individuals in non-English-speaking countries preparing for the TOEIC English language proficiency exam.

This exam is often a prerequisite for admission to English-language universities for non-native English speakers.

The application has been utilized by over 2.5 million students in Korea and Japan.

Strategic Partnerships and Global Reach

Riiid has been actively forging partnerships to expand its test preparation services to other exams.

• A collaboration with Kaplan for GMAT preparation for Korean students.
• An app, developed with ConnecME Education, assists students in Egypt, UAE, Turkey, Saudi Arabia, and Jordan in preparing for the ACT.
• An agreement to create AI-powered tools for students in Latin America preparing for college entrance exams.

The ACT development followed the appointment of ACT’s former CEO, Marten Roorda, as an “executive in residence” at Riiid Labs, potentially signaling further expansion of ACT preparation programs.

Diversification into Vocational Education

Beyond university entrance exams, Riiid has also developed applications for vocational training.

These include Santa Realtor, designed for real estate agent exam preparation, and a test preparation tool for insurance agent exams, both available in Korea.

The Rise of AI in Edtech and Riiid's Innovation

The company’s growth coincides with a broader trend of increased investment and credibility in edtech.

This is driven by the need to address the learning gaps created by disruptions to in-person education.

The integration of artificial intelligence – including computer vision, natural language processing, and machine learning – is becoming increasingly common.

Riiid distinguishes itself through a strong focus on research and development, evidenced by its intellectual property portfolio.

The company has filed 103 domestic and international patent applications, with 27 already granted.

Riiid's Vision for the Future of Education

“Riiid wants to transform education with AI, and achieve a true democratization of educational opportunities,” stated Riiid CEO YJ Jang.

“This investment is only the beginning of our journey in creating a new industry ecosystem and we will carry out this mission with global partnerships.”

SoftBank's Investment in Edtech

This investment represents one of SoftBank’s larger commitments to the edtech sector.

Previous investments include Kahoot ($215 million), Unacademy in India, and Descomplica in Brazil.

Notably, this is SoftBank’s first investment specifically focused on AI applications within education.

SoftBank's Perspective on Riiid

“Riiid is driving a paradigm shift in education, from a ‘one size fits all’ approach to personalized instruction,” said Greg Moon, managing partner at SoftBank Investment Advisers.

“Powered by AI and machine learning, Riiid’s platform provides education companies, schools and students with personalized plans and tools to optimize learning potential.”

“We are delighted to partner with YJ and the Riiid team to support their ambition of democratizing quality education around the world.”