Vietnamese Edtech Startup Prep Secures $7M in Series A Funding for Expansion

Vietnam-based edtech startup Prep, specializing in language learning and test preparation, has successfully secured US$7 million in Series A funding. Private equity and venture capital firm Northstar Ventures and global asset manager Cercano Management Asia jointly led the funding round.

Prep’s latest financing round also included Touchstone Partners, East Ventures, and Saison Capital. With this capital infusion, Prep plans to expand its team, enhance its learning tools, and explore opportunities to expand its product offerings and geographical footprint. The company aims to deliver more personalized learning experiences to its growing user base while maintaining profitability.

Prep’s existing seed round investors have chosen to participate in this new funding round, showing continued support for the company’s growth and expansion efforts. Other participants in the funding round included East Ventures, Touchstone Partners, and Saison Capital, the venture arm of Credit Saison, a Japanese financial company.  

Tu Pham, CEO of Prep, expressed the company’s vision of providing every learner with a dedicated personal teacher and mentor to assist them in achieving their learning objectives. Despite being only four years old, Prep has managed to attract hundreds of thousands of users, with its proprietary AI technologies like the AI-powered Virtual Speaking and Virtual Writing Rooms enabling rapid scalability and cost-effective education delivery. 

He expressed gratitude for the new investment, citing it as a crucial milestone in realizing Prep’s vision. 

Pham emphasized that Prep’s affordable tuition model allows it to serve students in major cities as well as those in underserved Tier 2 and 3 towns and cities.

Tu Pham and Nam Tran, the current CEO and CTO of the startup founded the platform in 2020. Prep is an online language learning and test preparation platform that aims to help learners of all ages achieve their full potential. The edtech startup offers personalized study plans, interactive learning content, and AI-powered test and role-playing rooms. 

The learning platform incorporates proprietary AI technologies, including virtual speaking and writing rooms, contributing to Prep’s expansion and increased user base. 

Melvin Hade, Managing Director at Northstar Ventures, highlighted the growing importance of English in Vietnamese higher education and the workforce. 

Additionally, Hade expressed confidence in Prep’s ability to disrupt the language test prep market in Vietnam and expand its offerings to other languages and countries in the region. 

The application of technology of the edtech startup enhances language learning and standardized test preparation has gained praise from investors. MJ Yu, Managing Director of Cercano Management Asia, highlighted the company’s goals to make quality education more accessible through technology. 

Tu Ngo, General Partner at Touchstone Partners, expressed honor in partnering with Prep early on and reiterated their plans to fulfill the company’s mission of providing personalized education to all students, regardless of their background. Wesley Tay from East Ventures echoed this sentiment, expressing confidence in Prep’s role in democratizing talent upskilling in Vietnam and Southeast Asia.

Ziheng Li, Vice President at Saison Capital, shared his firsthand experience of the test preparation market’s size. Having grown up in China and learned English to study abroad, he emphasized the continuous growth of the online education market and expressed pride in supporting Prep as a market leader. 

Also Read:

• China Emerges as Global Tech Hub with 369 Unicorns Dominating AI and Semiconductor Sectors
• Betagro Launches Betagro Ventures to Support Food Tech Startups
• Xponent Program: Mandiri Capital’s Step into International Markets
• Starseed Launches New Revolutionary ‘Pulitzer AI’ PR SaaS Platform for Automated Press Release
• German Startup Crowned Champion at EPiC 2024, Hong Kong’s Flagship Global Elevator Pitch Competition