Vietnamese edtech startup Prep raises $1m from East Ventures, Cercano


Vietnam-based online learning platform, Prep, has raised $1 million in funding co-led by East Ventures and Cercano Management.

This latest round of funding brings the total funds raised by Prep to $2 million, including a $1 million investment from Touchstone Partners in 2022.

The new investment will enable Prep to accelerate its product development and expand its business activities, further increasing its market adoption.

Prep specializes in offering online courses and mock exams focusing on standardized language tests like IELTS, TOEIC, and the High School Graduation Exam.

Their deep learning technology creates an immersive and interactive real-test environment that enhances learning effectiveness. Each student’s learning journey is personalized and tailored to their unique learning style, pace, and preferences.

Prep was founded in 2020 by Tu Pham and Tran Hoai Nam with a mission to make quality test preparation accessible to everyone.

The founders combined their experience in teaching languages and developing edtech products to create a learning platform that addressed major issues in the field of education in Vietnam and the region.

In Vietnam, high-quality standardized test preparation services have always been in demand, with the language learning market having a potential size of $2.1 billion.

Of this, $1.6 billion is for the English market, and the remainder is 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.

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 aims to expand its user base to half a million and offer other standardized language test preparation offerings, such as Japanese (JLPT), Chinese (HSK), and Korean (TOPIK).

Prep’s innovative approach to online education and its commitment to providing affordable and effective learning solutions impressed investors.

The COVID-19 pandemic has amplified online education adoption and accelerated digital education acceptance, making Prep a category leader within the digital test preparation vertical.

The company’s emphasis on technology, application of natural language processing tools, and outcome-oriented approach have positioned it well to provide quality education in Vietnam and beyond. –