ubits Secures $25M Funding for Corporate Training Platform in Latin America

UBITS Secures $25 Million to Expand Corporate Learning in Latin America

UBITS, a business-to-business (B2B) online learning platform focused on employee upskilling throughout Latin America, has successfully closed a $25 million funding round. Riverwood Capital spearheaded this investment.

Company Origins and Early Development

Founded in 2018 in Bogota, Colombia, by Julián Melo and Marta Forero, UBITS was conceived with the vision of becoming “the Netflix for corporate training in LatAm.” The founders initially participated in the Y Combinator program.

Following their time at Y Combinator, they secured seed funding and returned to Colombia to develop their initial program and course offerings, which were launched in January 2019.

Platform Growth and Course Catalog

Initially, the platform featured a limited selection of 30 to 40 courses, and the underlying technology was still under development, as Melo acknowledges.

Today, UBITS boasts a catalog of over 750 courses. This is considered the most extensive collection of corporate training materials available in Spanish. The platform also incorporates advanced features designed to facilitate practical application of learned skills.

Data Analytics and Personalized Learning

UBITS provides companies with a “very powerful dashboard” for tracking learning analytics. This dashboard displays key metrics such as course enrollment numbers, completion rates, and course rankings.

The company is actively enhancing its platform to deliver a more personalized learning experience, tailoring training paths to the individual needs of each employee.

Revenue Growth and Customer Acquisition

Over the last two years, UBITS has experienced substantial revenue growth, increasing by “more than 8x.” The platform currently serves hundreds of enterprise clients.

In 2021 alone, revenue increased by “2.5x,” and the customer base expanded from 110 to nearly 350. The platform saw usage climb to almost 100,000 students, a significant increase from the 28,000 users in the previous year.

UBITS has also established a partnership with Coursera to extend access to its courses to individual consumers (B2C).

Future Expansion Plans

“Our goal is to have over 1,000 enterprise and midmarket customers and more than 1 million students using the platform by the end of 2022,” Melo stated in an interview with TechCrunch.

Investment Details

In addition to Riverwood Capital, Owl Ventures (which led the $5 million Series A round last June), Endeavor Catalyst, and Roble Ventures participated in this financing round.

A strategic investment was also received from Stanford University.

Subscription Model and Course Offerings

UBITS operates on an annual subscription model per user, granting employees unlimited access to a virtual content library and live training sessions.

The course catalog covers a broad spectrum of skills, encompassing both soft skills (like leadership) and technical skills (such as sales, technology training, and commercial capabilities).

Expert Partnerships and Learning Customization

The startup collaborates with “top local experts” to deliver micro-courses and live classes. Companies can then monitor key performance indicators (KPIs) and customize the learning journey for their employees.

“We’re personalizing the experience with algorithms based on AI so that we can recommend adequate courses and content to each person depending on their behavior on the platform,” Melo explained.

Geographic Expansion and Team Growth

UBITS has expanded its operations to Mexico and Peru and now maintains dual headquarters in Mexico City, where the co-founders currently reside.

To date, students have completed over 600,000 courses on the platform. The company intends to utilize the new funding to enhance its proprietary content, adding more than 2,000 new courses.

Further investment will be directed towards developing AI-based functionalities and expanding into new markets, including Chile, Spain, and other Spanish-speaking regions. The team is also planned to double in size this year, growing from its current 280 employees.

Strategic Objectives

“Our main goal is to create more content, improve technology and hire more engineers and people creating content, as well as people in product development, sales and customer success. We want to not only bring more customers but also retain and expand them.”

Investor Perspectives

Francisco Alvarez-Demalde, co-founder and managing partner of Riverwood Capital, believes UBITS has created a “disruptive employee-centric corporate learning platform with an engaging Spanish language offering.” He highlights the platform’s ability to address critical skills gaps and improve employee retention, productivity, and overall business outcomes.

Federico Storani, executive director of Riverwood Capital, will be joining UBITS’ board of directors. He emphasizes the platform’s strength in providing accessible upskilling material that caters to employees at all levels within enterprises and mid-market companies in the region.

Addressing the Skills Gap in Latin America

“LatAm has the largest skills gap in the world. We want to solve this problem to help people grow, so companies will grow, and there will be a better society and economy in the region,” Melo concluded.