Growth Factorials

At present, when there is harsh scrutiny of the edtech sector because of a few colossal falls from grace, sometimes you wonder if there are any success stories in the edtech sector. There is one name that pops out because of its large-scale impact- Duolingo.

Started in 2011 by Luis von Ahn and Severin Hacker, Duolingo was started to make language learning accessible to all. Its founder and CEO, Luis von Ahn is a person of extraordinary intellect and skills. He was one of the pioneers in the development of CAPTCHA, the widely used online security measure. He also invented reCAPTCHA, which also helps transcribe old books using what he calls ‘human computation’- methods that combine human mindpower with computers to solve problems that neither could solve alone.

At a time when language courses were mostly expensive, von Ahn thought about creating a product that would make language learning affordable and accessible. They made it free and added gamification elements like streaks, point systems and friendly competition. Duolingo was able to create a unique language learning platform- the freemium model attracted a large user base and gamification made learning fun, making it addictive.

Duolingo has used the freemium model, gamification, byte size learning, personalization, experimentation and data-driven decision-making for product development and growth. The enormity of the impact Duolingo has created can be seen in its operational and financial metrics. In 2023, Duolingo grew its revenue by 44% YoY to $ 531.1 mn and had 88.1 million monthly active users, 26.9 million daily users, and 6.6 mn paid subscribers.

Duolingo’s story is about innovation, accessibility, and the power of making learning fun whether you see its product or its business model. If you have to pick one edtech that is making waves and creating a dramatic impact both for learners and for its investors, you should not think twice and pick Duolingo.