Language learning app Duolingo has managed to hit a valuation of USD 6.5 billion after its shares surged by 40% during its recent Nasdaq debut. This makes it the latest education technology entity to enter the major league on Wall Street.
Sources aware of the development stated that Duolingo’s stock opened at USD 141.4 per share, exceeding its initial public offering price of USD 102 per share. The stock then cut back to USD 130.92 during afternoon trading.
The company intends to improve its platform following the IPO while expanding its reach in Asia, its fastest-growing market. Confirming this, the co-founder and CEO Luis von Ahn mentioned that the company can now operate at a higher level and enter the major league by going public.
It is also worth noting here that Duolingo’s largest market is currently the United States, which is home to around 20% of its users and approximately 45% of its overall revenue.
Duolingo had secured around USD 521 million during its IPO by selling around 5.1 million shares. However, at least 1.4 million of those shares were sold by current stockholders and the proceeds might not go to the company.
Interestingly, Duolingo had increased its price target range to around USD 100 per share, from an earlier estimate of between USD 85 to USD 95 per share. Allen & Company as well as Goldman Sachs are currently the lead underwriters for Duolingo’s IPO.
Founded back in 2011, Duolingo offers courses in over 40 languages and boasts around 40 million monthly active users. The company’s robust flotation follows investors increased interest in the edtech space, especially after the COVID-19 restrictions moved teachers and students towards digital mediums.
Even Byju’s intends to go public in the upcoming years, after witnessing significant growth during the pandemic. India’s highest valued edtech startup has spent at least USD 2 billion during its acquisition spree in the past six months.
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