Language learning platforms speak the language of growth
The onset of lockdown left people with a lot more time on their hands. With this came the urge to learn something new, and learning a new language and understanding a different culture was an appealing prospect for many. As a result, language learning platforms have seen a surge in consumer engagement and growth.
Online language learning costs less than its offline alternatives since there is no need for a physical classroom and equipment. Gamification and interactive models of learning have made the process of learning a new language fun and attractive. Additionally, the self paced structure allows for a lot more flexibility in the learning process. According to the market research report by Technavio, the online language learning market size will likely grow by $21.6B between 2020 to 2024.
Duolingo, the leader in gamified app-based language learning, now has 42 million monthly active users, up from 30 million in Dec ’19, and CEO Luis Von Ahn says that they will reach $180M in bookings this year. The Duolingo English Test (DET) which tests the proficiency of its takers in English has seen a growth of 1500% this year alone. Its growth of 73% in sales YoY is reflected in the number of reviews the Duolingo app has received in the Play Store, rising 46% from 12000 to nearly 18000. Duolingo has also added 173 new employees in the last year, a 36% increase YoY.
Tandem, an app which connects users for mutual practice, has seen a 200% increase in the number of users since the pandemic began. They recently closed a $5.7M Series A round led by European VC firm Brighteye Ventures to allow them to capitalise on the opportunities in social learning. The number of ratings in the Play Store has risen by 51% YoY and website traffic has seen a rise of 331% this year alone.
Other players in this space like Rosetta, Busuu and Cambly have also benefited from the surge in interest with the number of Play Store reviews they have received rising by 70%, 27%, and 50% respectively YoY. Busuu and Cambly have seen increased website traffic of 27% and 29% respectively and have bolstered their workforce by 47% and 17% since Jan ’20 to effectively handle the rise in demand. The rise in growth prospects in the language learning sector led Cambium Learning to acquire Rosetta Stone, and they plan to maintain Rosetta Stone as a distinct brand with its own identity.
Early Stage players in the space
The presence of established players has not deterred the entry of new platforms. Speakly recently closed a €900 K seed funding round led by Finnish Superhero Capital which enables the company to bring its unique scientific approach based on the statistical relevance of words and sentences to consumers. Early stage company, Drops, encourages its users to play with their words and learn with their language games. It offers users the opportunity to learn 41 different languages and has developed a dedicated app for each language. They are also collaborating with K-pop idol Amber Liu to teach fans Korean. Rypeapp is growing by offering live, one-on-one professional sessions with thoroughly vetted professionals. Drops and Rypeapp have seen website traffic growth of 82% and 49% respectively. Drops has seen a 60% increase in the number of reviews it has received YoY and has seen fit to increase its workforce by 9% in the past 6 months.
Research suggests that e-learning of this kind helps not only with retaining more information but also takes less time than face-to-face training. With how cost effective and convenient these platforms have proven to be, we can expect user engagement with the app to remain buoyant even after things return to normal. People are recognizing multilingualism as a new hobby and a useful skill, and it seems increasingly likely that they will turn to these platforms to learn and practice.
