Service LinguaLeo raised $ 500 thousand on the background of information about unprofitability and downsizing

    Investors Social Discovery Ventures ( SD Ventures ) and Runa Capital have invested $ 500 thousand in a service for teaching English LinguaLeo . This is not the first time Runa Capital has invested in a project. In July 2012, the company invested $ 3 million in LinguaLeo.

    The SD Ventures fund also invested in companies such as Shocase and Streetlife , Shazam service , TripTogether , a travel search site , AsianDate , Moonit . In the future, the possibility of mutually beneficial cooperation between LinguaLeo and the portfolio companies of the fund is not ruled out.

    The funds raised will be used to develop the priority areas of the project - improving the quality of training and optimizing motivational mechanisms.

    The concept of the service is based on game teaching methods. They serve not only to learn English more effectively, but also to increase user motivation. According to company estimates, more than 9 million people currently use the service. There are several versions of the service for different platforms. Any user can access LinguaLeo through the web interface. And owners of devices based on Android, iOS and Windows Phone can download the appropriate application.

    LinguaLeo was launched in 2010. The first investors of the project were Egor Rudi, Igor Ryabenky and Sergey Kuznetsov. They invested $ 200 thousand in the project. Since its founding, LinguaLeo has raised $ 3.7 million in total. At the beginning of last year, the project management attempted to bring it to the international market. However, it was unsuccessful.

    On May 15, Megamind wrote that the LinguaLeo service planned to reduce staff by 30%. This decision is explained by the unfavorable economic situation. The remaining 70% of employees were going to cut salaries. This was due to lack of funding. But now, with the advent of new investments, the team will be able to retain its core employees and achieve self-sufficiency, Firrma reports .

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