Prep, the Vietnam-based online learning platform that specializes in standardized language test preparation, announced that it has raised US$ 1 million co-led by East Ventures and Cercano Management. This round of funding will further strengthen Prep’s balance sheet, bringing the total funds raised by Prep to US$ 2 million, including the US$ 1 million invested by Touchstone Partners earlier in 2022. The new investment will allow Prep to accelerate its product development and business activities to increase adoption in the market.
Prep provides online courses and mock exam solutions that focus on standardized language tests, such as IELTS, TOEIC and the High School Graduation Exam. The company is committed to providing an exceptional learning experience that is result-oriented, engaging, and personalized. The platform offers asynchronous interactive content that fosters engagement and active participation among students. Utilizing deep learning technology, Prep’s platform simulates an immersive and interactive real-test environment which enhances learning effectiveness. Each student’s learning journey is personalized and tailored to their unique learning style, pace and preferences.
“We are thrilled to have the support from all our investors as we provide accessible quality education in Vietnam and in Southeast Asia. We believe this investment will support us in bringing high-quality language courses to the learners, providing them with the desired language skills to succeed in today’s fast-changing world,” said Tu Pham, Founder and Chief Executive Officer of Prep
Prep was founded by Tu Pham (Founder and Chief Executive Officer) and Tran Hoai Nam (Co-Founder and Chief Technology Officer) in 2020, with a mission of making quality test preparation accessible to everyone. The founders combined their experience in teaching languages and developing edtech products to create a learning platform that solved major issues in the field of education in Vietnam and in the region. These include the lack of interaction and personalization on existing online platforms, while offline education faces significant geographical barriers. In Vietnam, most of the experienced teachers are located in tier 1 cities, leaving a vast majority of students in tier 2 and tier 3 cities with limited access to quality teaching and learning that they deserve and aspire for.
In Vietnam, high-quality standardized test preparation services have always been sought after. The language learning market within Vietnam has tremendous potential, with an estimated market size of US$ 2.1 billion, out of which US$ 1.6 billion is for the English market and the remaining for other languages. Prep was born out of this vast market opportunity as the digital evolution of IPP Education, a chain of offline language centers founded by Tu in 2014.
“We are impressed by Prep’s innovative approach to online education and their commitment to providing affordable and effective learning solutions. With the big potential in the market, combined with the extensive experience of Tu and team, we believe that Prep is well-positioned to provide quality education in Vietnam and beyond. We welcome Prep to the East Ventures’ family and are excited to be part of their journey,” said Koh Wai Kit, Managing Partner at East Ventures.
“The COVID-19 pandemic has amplified online education adoption and accelerated digital education acceptance across schools, educators, students, and parents. We strongly believe Prep is a category leader within the digital test preparation vertical with their emphasis on technology, application of natural language processing tools and outcome-oriented approach at their core. We see immense scale and potential in the space they are addressing and are excited to embark on this journey with the team,” said MJ Yu, Managing Director of Cercano Management
Since its launch, Prep has grown rapidly, attracting more than 100,000 users across all provinces and cities in Vietnam, and regional markets. In 2023, Prep is aiming to expand its user base to half a million and to have other standardized language test preparation offerings, such as Japanese (JLPT), Chinese (HSK) and Korean (TOPIK). This investment strengthens Prep’s confidence in transforming the future of test preparation and empowering learners with the knowledge and skills they need.