Riiid, a South Korean artificial intelligence-based educational technology company, has acquired Langoo, the Japanese distributor of its service, with the aim of expanding its business in the world’s third-largest economy, the company said on Saturday.
The acquisition comes less than five months after securing $ 175 million in Series D funding raised only from Softbank’s Japanese Vision Fund 2, and is part of the company’s broader strategy to grow through mergers and acquisitions, he said.
âBy leveraging this investment, we will seize greater opportunities in the Japanese market. This acquisition is the first step in an inorganic strategy to apply Riiid’s AI technology to the global market and help more learners around the world, âsaid Jang Young-jun, co-founder and CEO of Riiid.
As of 2019, Langoo has been the exclusive supplier of Riiid Tutor in Japan, where sales of the app have since grown by 400% per year.
âLangoo’s exceptional ability in its local business with Riiid Tutor was the primary reason for this acquisition,â added Jang.
With this acquisition, Riiid establishes a Japanese branch to address the local distance learning and education market, which was worth 288 billion yen ($ 2.6 billion) in 2020, an increase of 22. 5% from the previous year amid the COVID-19 pandemic.
The company said it plans to strengthen various business segments, including marketing, sales and business-to-business service development, in order to apply the product’s success in Korea to the Japanese market.
Riiid said he also plans to expand his service beyond the English test for international communication to AI-based English and English coaching services, in order to expand his client base.
Riiid is currently preparing or providing AI-based learning solutions in a variety of fields in more than 10 countries in South America, Central Asia and East Asia.