Riiid Acquires Langoo: SoftBank-Backed Edtech Expands in Japan

Riiid Expands Japanese Presence Through Acquisition

Riiid, an AI-driven edtech firm headquartered in South Korea, has finalized the acquisition of its Japanese distribution partner, Langoo. This strategic move is designed to strengthen the company’s position within the Japanese market.

Recent Funding and Global Expansion

The acquisition follows a recent $175 million Series D funding round secured in May from SoftBank’s Vision Fund 2. Riiid intends to utilize these funds to further accelerate its global expansion initiatives.

Langoo and Riiid Tutor

Langoo serves as the partner for Riiid Tutor – previously known as Santa – in Japan. This application is a test preparation tool specifically designed for the Test of English for International Communication (TOEIC).

Riiid reports that over 2.5 million users have downloaded the Riiid Tutor app across both South Korea and Japan. Upon its launch in Japan in April 2019, the app quickly achieved the number one ranking in sales among educational applications on the Android platform within its first week.

Statements from Riiid Leadership

“Langoo’s demonstrated proficiency in the Japanese market, particularly with Riiid Tutor, was the primary driver behind this acquisition,” stated YJ Jang, co-founder and CEO of Riiid. “Our core strength lies in our technology’s scalability and adaptability across diverse regions, languages, and subject areas. This investment will enable us to capitalize on wider opportunities within Japan.”

Jang further explained that the acquisition represents the initial phase of an inorganic growth strategy, ultimately aimed at deploying Riiid’s AI technology on a global scale and assisting learners worldwide.

The Japanese Edtech Market

Japan represents a substantial education market with significant growth potential. The edtech sector in Japan is still largely reliant on traditional, in-person instruction, presenting a considerable opportunity for innovation, according to a Riiid spokesperson.

Following successful market penetration in Japan, Riiid plans to extend its reach into other international territories, including regions within Central and East Asia.

Market Size and Growth

According to a report by the Yano Research Institute, the Japanese remote learning industry was valued at $2.6 billion in 2020, reflecting a year-over-year increase of 22.4%.

Strategic Plans for Japan

Through this acquisition, Riiid intends to establish a dedicated Japanese unit to bolster its marketing, sales, and B2B business development efforts. The company aims to address the specific needs of the local remote learning and education landscape.

Riiid will broaden its service offerings in Japan to encompass preparation for the TOEIC exam, English conversation practice, and personalized tutoring services, thereby expanding its customer base.

Global Footprint and Partnerships

Riiid has been actively expanding its global presence since 2020, beginning with the establishment of Riiid Labs in Silicon Valley.

The company currently serves users in Vietnam and Taiwan and recently formed a partnership with an AI edtech company based in India. Additionally, plans are underway to open a research and development center in Canada.

Expanding Service Portfolio

Beyond the TOEIC mobile application, Riiid launched an ACT prep mobile app in collaboration with ConnectMe Education in early 2021, targeting markets in Egypt, Turkey, the UAE, Jordan, and Saudi Arabia.

In 2021, a beta version of a GMAT preparation tool was also unveiled, in partnership with Kaplan, initially focusing on the Korean market.

The launch of Riiid Classroom, an AI-powered solution designed to provide teachers with formative assessment and learning programs, is scheduled for the first quarter of 2022. Key features will include individualized performance analysis, tailored lecture recommendations, student dropout risk assessment, and task management capabilities.

Company Overview

Riiid delivers AI-based online education solutions for a wide range of learners, including K-12 students, post-secondary students, and those seeking corporate training.

Founded in 2014, the company employs approximately 210 individuals globally, with a presence in South Korea, the U.S., the U.K., Canada, Brazil, and Vietnam.