Status: 07.09.2021 10:36 a.m.
The language learning provider Babbel wants to go public this year and is hoping for income of 180 million euros. With this move, the Berlin company is emulating its US competitor Duolingo.
The US language learning provider Duolingo has shown the way. Now the Berlin competitor Babbel also wants to go public this year. The share placement is expected to bring in around 180 million euros gross and will take place by the end of the year, Babbel announced. The company intends to use the proceeds, among other things, to further expand its business and accelerate international expansion.
Under the brand “Babbel” – derived from the southern German dialect term for speak – the company offers language courses, vocabulary and spelling tests in 15 languages in its app on a subscription basis. Babbel also relies on a language travel platform and new learning methods such as podcasts and live tutoring classes by native speakers.
Aiming for expansion in the USA
“We are doing the first IPO of a technology company focused on education in Germany,” said Babbel boss Arne Schepker of the Reuters news agency. According to insiders, a company value of more than one billion euros could result on the basis of the shares brought on the stock exchange.
“We also see great potential in corporate banking. We also want to expand further in the USA. We are one of the few startups from Germany that is successful there,” said Schepker.
18 percent growth
With the announcement, Babbel also released some business figures. In the first half of this year, sales rose by 18 percent to 83 million euros. In the past year, the proceeds were therefore 147 million euros. More detailed information will soon be available in the prospectus.
Billions valuation for Duolingo
In the summer, Babbel’s competitor Duolingo went public and was valued at $ 6.5 billion. The US company had sales of a good 114 million dollars in the first half of 2021, the equivalent of 96 million euros.
With the announcement, Babbel ends the summer break on the Frankfurt Stock Exchange, before which more than 15 companies had already made the leap onto the floor this year and collectively collected more than nine billion euros.