As a leading expert in enterprise SaaS and the European tech landscape, Vijay Raina specializes in analyzing the intersection of software architecture and market strategy. He joins us to dissect the remarkable journey of Preply, a language-learning marketplace that recently achieved a $1.2 billion valuation. This conversation explores Preply’s nuanced approach to integrating artificial intelligence without displacing its human tutors, a strategy that has propelled it to 12 months of sustained profitability. We will delve into the strategic decisions that balanced this growth, the significance of their Series D funding led by a firm known for IPO expertise, and the profound cultural impact of maintaining a major operational hub in Kyiv.
You’ve described a future where learning is human-guided yet amplified by AI. How does Preply practically balance AI integration, like matching learners to tutors, while ensuring its 100,000 tutors remain the platform’s core strength? Could you share a specific example of this strategy in action?
It’s a delicate and critical balance, and Preply seems to be navigating it astutely. They’ve observed the market, including the backlash Duolingo faced for its “AI-first” pivot, and understand that their human tutors are the key differentiator. Their strategy isn’t about replacement; it’s about amplification. The core belief, as their CEO stated, is that the future is “human-guided and amplified by AI.” In practice, this means using AI for the heavy lifting that supports the human connection. For instance, their AI algorithms are already sophisticated enough to match learners with the tutors who best fit their specific needs, which is a crucial first step. From there, the AI continues to work in the background, generating lesson summaries and even homework, which brings a level of consistency and efficiency to the experience, freeing up the tutors to focus on what they do best: teach and connect.
Achieving 12 months of EBITDA profitability while scaling is a significant milestone. What specific strategic decisions allowed Preply to balance profitability with growth and AI investment? Could you share the key metrics you focused on to navigate this trade-off successfully?
The timing here is not a coincidence. Reaching 12 months of EBITDA profitability happened in parallel with a significant ramp-up in their AI integration. This suggests a direct strategic link. By automating and optimizing key parts of the platform—like the complex task of matching students to tutors from a pool of 100,000 self-employed instructors—they are driving massive operational efficiencies. This allows them to scale without proportionally increasing their overhead. While specific internal metrics weren’t disclosed, you can infer they are intensely focused on tutor utilization, student retention, and the lifetime value of a customer. The AI-driven matching improves the initial user experience, likely boosting conversion and retention, while tools like automated summaries increase the value delivered in each session, justifying the cost and keeping users engaged longer. This creates a virtuous cycle where smart investment in technology directly fuels sustainable, profitable growth.
With your Series D led by WestCap, a firm with experience taking companies public, what specific capabilities or strategic insights do you hope to gain from this partnership? Beyond capital, how is this preparing Preply for its next chapter, whether that involves a public offering or not?
Bringing WestCap on board is a clear signal of ambition that goes far beyond the capital itself. This is a strategic move to bring seasoned expertise in-house for the next phase of the company’s life. The fact that the round was led by Laurence Tosi, Airbnb’s former CFO, is incredibly telling. They’re not just getting a check; they’re getting access to a playbook from one of the most successful marketplace IPOs in recent history. While the company says there’s no concrete timeline for going public, this partnership is essentially a preparatory phase. WestCap brings that “phenomenal experience” in navigating public markets, which means they can help Preply start thinking and operating like a public company long before any S-1 is filed, instilling the necessary financial discipline, governance, and long-term strategic planning.
Preply maintains a Kyiv office for 150 employees with 24/7 access and generators for power. Beyond the logistics, how has this commitment shaped your company culture and operational strategy? Can you share a specific story that illustrates the resilience and creativity you’ve seen in your team?
This commitment to their Kyiv office is one of the most powerful stories in the European tech scene right now. It goes far beyond logistics; it has fundamentally forged the company’s soul. Providing a warm, powered, and connected office 24/7 is a lifeline, but what the company has received in return is immeasurable. The CEO’s deep admiration for his team’s resilience and creativity isn’t just talk. When you have a team of 150 people who are dealing with air raid sirens and power outages yet remain dedicated to their work, it builds a culture of profound grit and mutual support. This shared experience, seeing colleagues help one another through such challenging times, has made the entire 750-person organization stronger. It forces a level of creativity and problem-solving that you simply can’t replicate in a normal corporate environment, making them more adaptable and resilient in every aspect of their business.
What is your forecast for the future of AI-assisted human instruction in the next five years?
The trajectory is clear: we’re moving toward a hybrid model that Preply is pioneering. The future isn’t a binary choice between a human teacher or an AI bot. Instead, it’s about creating a symbiotic relationship where AI handles the repetitive, data-intensive tasks, and humans focus on the high-touch, empathetic, and motivational aspects of teaching. In the next five years, I expect AI to become an indispensable co-pilot for every instructor, handling personalized curriculum generation, real-time feedback on pronunciation or grammar, and adaptive homework assignments. This will free up human tutors to act more as coaches and mentors, focusing on conversational practice, cultural nuance, and building a student’s confidence—the very things that inspire a genuine love for learning. The winning platforms will be those that make this partnership feel seamless, leveraging technology not to replace, but to elevate, the irreplaceable human connection.
