goStudent Raises $244M at $1.7B Valuation

The Rise of Online Tutoring and GoStudent's Funding

The past year witnessed a significant surge in online education, impacting students and families alike. GoStudent, a company capitalizing on this shift, has recently announced a substantial funding round to fuel its continued expansion.

GoStudent Secures €205 Million in Series C Funding

GoStudent, a marketplace connecting K-12 students with one-on-one video tutors, has raised €205 million ($244 million) in a Series C funding round. This investment values the company at €1.4 billion ($1.7 billion).

Rapid Growth and Expansion Plans

The Vienna-based startup is experiencing considerable growth, currently facilitating approximately 400,000 tutoring sessions monthly. This represents a 700% increase year-over-year and a 15% rise month-over-month.

GoStudent intends to double its workforce to 1,000 employees and expand its tutor network to 10,000 by year-end. Future expansion includes entering the Mexican and Canadian markets, alongside broadening its subject offerings.

Funding Details and Market Position

DST Global led the funding round, with participation from SoftBank's Vision Fund 2, Tencent, Dragoneer, and existing investors like Coatue, Left Lane Capital, and DN Capital. To date, GoStudent has secured €291 million in funding.

This investment solidifies GoStudent’s position as the most highly valued edtech startup in Europe.

The Broader Edtech Funding Trend

GoStudent’s success is part of a larger trend of increased investment in edtech companies. Numerous firms, including Byju’s, Kahoot, and Brainly, have recently received significant funding.

This surge in investment reflects the growing relevance of online and digital learning tools, particularly accelerated by the pandemic.

GoStudent's Evolution and Integrated Service

Founded in 2016, GoStudent initially focused on a question-and-answer network and tutor connections. However, the company strategically shifted its focus to one-to-one tutoring approximately 2.5 years ago.

GoStudent offers a comprehensive service, allowing students and parents to choose from over 30 subjects – including science, math, and languages – for targeted tutoring or exam preparation.

Tutor Vetting and Learning Plans

All tutors undergo rigorous testing, vetting, and interviews before joining the platform. Parents and students also participate in interviews and practice lessons to ensure a good fit.

Personalized learning plans are tailored to students’ schedules and goals, incorporating homework, curriculum outlines, and assessments. All aspects, including class scheduling and payments, are managed through the platform.

Competition and the "Offline Shadow Market"

While numerous online tutoring platforms exist, GoStudent’s primary competition remains traditional in-person tutoring and informal tutor networks. The company refers to this as the “offline shadow market of tutors.”

Despite utilizing technology, GoStudent emphasizes the importance of human connection in the learning process.

The Pandemic's Complex Impact

Interestingly, GoStudent’s founders acknowledge a mixed impact from the COVID-19 pandemic. While demand for online learning increased, school closures initially reduced pressure and exam-related tutoring needs.

However, the pandemic ultimately accelerated the acceptance of digital education and shifted parental mindsets.

Long-Term Growth and Underlying Factors

GoStudent aims to sustain growth beyond pandemic-related circumstances. The company recognizes that increasing academic pressure, a focus on testing, and the accessibility of online tutoring are key drivers of demand.

These factors, combined with a convenient and affordable way to connect with support, contribute to the continued growth of the online tutoring market.