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Kahoot raises $28M for its user-generated educational gaming platform, now valued at $1.4B

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Kahoot raises $28M for its user-generated educational gaming platform, now valued at $1.4B

As colleges keep closed and summer season camp appears extra like a germscape than an escape, college students are staying at house for the foreseeable future and have shifted studying to their dwelling rooms. Now, Norwegian academic gaming firm Kahoot — the favored platform with 1.three billion lively customers and over 100 million video games (most created by customers themselves) — has raised a brand new spherical of funding of $28 million to maintain up with demand.

The Oslo-based startup, which began to checklist a few of its shares on Oslo’s Merkur Market in October 2019, raised the $28 million in a non-public placement, and stated it additionally raised an additional $62 million in secondary shares. The new fairness funding included participation from Northzone, an current backer of the startup, and CEO Eilert Hanoa. While it’s not a conventional privately held startup within the conventional sense, on the market shut immediately, the corporate’s valuation was $1.39 billion (or 13.389 billion Norwegian krone).

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Existing traders within the firm embody Disney and Microsoft, and the corporate has raised $110 million up to now.

Kahoot launched in 2013 and acquired its begin and picked up most of its traction on the planet of training by way of its use in colleges, the place lecturers have leaned on it as a means to offer extra participating content material to college students to enhance extra conventional (and sometimes drier) curriculum-based classes. Alongside that, the corporate has developed a profitable line of on-line coaching for enterprise customers as properly.

The world well being pandemic has modified all of that for Kahoot, because it has for a lot of different firms that constructed fashions based mostly on classroom use. In the previous couple of months, the corporate has boosted its content material for house studying, discovering an viewers of customers who’re dad and mom and employers on the lookout for methods to maintain college students and staff extra engaged.

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The firm says that within the final 12 months it had lively customers in 200 international locations, with greater than 50% of Ok-12 college students utilizing Kahoot in a faculty 12 months in that footprint. On prime of that, it can also be utilized in some 87% of “prime 500” universities all over the world, and that 97% of Fortune 500 firms are additionally utilizing it, though it doesn’t talk about what sort of penetration it has in that phase.

It appears that the coronavirus outbreak has not impacted enterprise as a lot because it has in some sectors. According to the midyear report it launched earlier this week, Q2 income is predicted to be $9 million, 290% progress in comparison with final 12 months and 40% progress in comparison with the earlier quarter, and for the complete 12 months 2020, it expects income between $32 million and $38 million, with a full IPO anticipated for 2021.

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As it has been doing even previous to the coronavirus outbreak, Kahoot has additionally continued to put money into inorganic progress to gasoline its growth. In May, it acquired math app maker DragonBox for $18 million in money and shares. The firm additionally runs an accelerator, Kahoot Ignite, to spur extra improvement on its platform.

However, Hanoa stated that Kahoot is shifting its focus to now additionally work with extra mature edtech companies.

“When we began out, we have been primarily receiving requests on early stage merchandise,” he stated. “Now we now have the chance to think about mature companies for both integration or company. It’s a unique focus.”

Update: A earlier model of this story stated that DragonBox was acquired in March. It was acquired in May. The story has been up to date to mirror this transformation. 

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