Softbank is Investing $ 215 Million in Kahoot
The company intends to use revenue from the transaction to expand growth through new partnerships, joint ventures and acquisitions. The investment is underway at a time when the demand for online learning is soaring against the backdrop of the consequences of the Corona epidemic.
Softbank is investing $ 215 million in the Norwegian Kahoot app, in a deal that will give it a 9.7% holding in the company. The investment is underway at a time when the demand for online learning is skyrocketing against the backdrop of the consequences of the corona plague.
According to the Norwegian company, it is selling 43 million new shares to Softbank at a price of 46 Norwegian kroner (around $ 5) per share. The company intends to use revenue from the transaction to expand growth through new partnerships, joint ventures and acquisitions. “This is a change of mindset that digital tools are a nice addition to school and classrooms to understand that they are perhaps the most important toolkit that helps generate student engagement,” company CEO Eilert Hanoa said in Statement
Eilert Hanoa: 2020 has been a year of accelerated growth for Kahoot!, and we are pleased to announce that we today raised USD 215 million after completing a private placement to a subsidiary of SoftBank Group. In addition, a private placement to a fund advised by Capital World Investors has been completed, through a sale of employee share options and other existing shares.
In order to explain the growth we are experiencing, we need to look beyond the interest from the investor community, and understand the needs and development across our vast base of users and customers. Over the last 12 months, we have seen 45% growth in users with over 20 million active accounts. Furthermore, we have reached 360,000 paying subscriptions in Q3 2020, a 160% year-over-year increase year over year, and we expect to reach 400,000 before the end of the quarter.
The growth of users and customers is telling a story about a general switch in mindset. Digital tools are no longer being treated as a nice-to-have additional set of features in classrooms, at work or at home – but rather as a vital toolkit to create engagement. We´re witnessing a shift in behaviour across consumers, educators, students and corporate professionals.
With the net proceeds from the private placement, Kahoot! can continue to accelerate the growth through value-creating non-organic opportunities and continue to build our unique and versatile platform.
While Kahoot! is known for providing powerful learning tools for a more engaging classroom experience, our continous growth in the enterprise segment has taught us that remote learning is key to the future generation of corporate learning. This is why we earlier this month acquired Actimo to join our growing family, helping us strengthen our offerings for organizations to help them with corporate learning, culture and engagement. In the future, we plan to carry out similar strategic moves to strengthen our offerings both to the education sector as well as the corporate side.
In addition, we will soon be introducing language learning as part of our offerings, a natural evolution as we grow our family of learning apps. We also earlier this month announced an exciting collaboration with Bitmoji, bringing the ability to add “Bitmoji’ avatars to the Kahoot! experience for teachers, students and corporations for an even more awesome and personalized learning experience!
In 2021, we will extend Kahoot! 360 with new functionality enabling organizations to bolster corporate learning and culture among employees. Also next year, we will offer Kahoot! Academy Marketplace for the global educator community where, not only educators, but also students and individuals can access and transact with high-quality, verified content from other educators and premium publishers.
With these great initiatives, we believe we are only scratching the surface of the possibilities we have in our journey to become the leading learning platform in the world.
Softbank is Investing $ 215 Million in Kahoot - /10