Codeacademy, Another EdTech Startup is Able to Raise Capital Amidst the Pandemic

IBL News | New York

Coding instructional platform Codeacademy announced yesterday it raised $40 million in a Series D round after years without raising capital. The round was led by Owl Ventures, with participation from Prosus and Union Square Venture.

Other startups like Udacity, CourseHero, Quizlet, and Class Dojo have been equally raising new funding as capital is flowing into the EdTech industry during the pandemic. The global health crisis has notoriously woken up VCs’ appetite for the remote learning sector.

New York-based Codeacademy said it will use the funding to add new products and courses and expand its footprint in growing markets like India. So far, the firm has raised $82.5M from investors.

Founded in 2011, the online learning platform claims to host 50 million learners, after seeing a large uptick with five million new users—150,000 paid subscribers of Codecademy Pro, and 600 customers of Codecademy for Business—in 2020.

“The company has been cash-flow positive for over two years and has consistently grown in new users and revenue,” said Zach Sims, CEO and Co-Founder.

Codeacademy provides online training on popular coding languages suitable for data science, machine learning, and game development-based careers. Along with a basic plan, it offers a $19 a month Pro membership.

Their Codeacademy for Business unit offers regular exercises, assessments and certificates intended to provide new skills on coding to corporate learners.

 

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