Berlin-based Babbel, a subscription-based language learning app and e-learning platform, is planning a public offering and listing on the Frankfurt Stock Exchange targeting gross proceeds of €180 million, which is expected to complete this year.
Babbel has sold millions of subscriptions for its language learning app catering to consumers and to companies. The company provides 60,000 lessons and more than 13,000 hours of content, enabling the study of 15 languages.
In its announcement of the IPO, the company stated it will use the proceeds to “further expand Babbel’s ecosystem, introduce new learning experiences and/or access new geographic markets and to settle certain claims under existing employee incentive schemes”.
Arne Schepker, chief executive of Babbel, said: “Taking Babbel public is the logical next step for us to leverage our full potential as the first ever German ed tech IPO. After establishing our self-study app, we are now focusing on further expanding our multi-product ecosystem. This is right in line with our mission – to create mutual understanding through languages. Knowing that successful learners rely on various experiences, from podcasts and videos to apps, to effectively learn a language, we will provide these experiences and do so with expert guidance. This is designed to help language learners achieve their objectives, which in many cases profoundly enriches their lives.”
Hermione McKee, chief financial officer at Babbel, added: “The IPO is a key milestone for Babbel. We are very proud of the company’s growth in the last 13 years, a true tech success story made in Europe. And we see further and huge growth potential for Babbel. Our strong operational base and market position means we are well-placed to drive growth through further enhancement and expansion of our ecosystem, scaling our B2B offering, continuing our growth journey in the US and further expanding into new markets.”
Date published: 7 September 2021