Udemy receives $32 million in funding
Online learning company Udemy has built a skills-based marketplace where tutors can sell skills and learners can gain access to free and paid courses. Udemy has raised $32 million in Series C funding led by Norwest Venture Partners with participation from Insight Venture Partners and MHS Capital. Udemy has raised $48 million in total so far. One of the advantages Udemy has is that it can offer tools for tutors to build courses and the company targets enterprises, offering itself as a platform for fulfilling staff training requirements.
Udemy will be using the funding to expand internationally outside of the U.S. and building its content library. The funding will also be used for product development, including course creation tools. Around 60% of its students are from outside the U.S. Revenue has grown by over 300% in the past 12 months.
“We do already have students in basically every country around the planet. And we have the site localized into 10 languages outside of English,” stated CEO Udemy Dennis Yang. “This is our first physical operation outside the U.S…. so it’s about making sure that we can create that same type of ecosystem that we’ve already created in the U.S.”
Udemy is used by over 3 million students since launching. Around 8,000 teachers have published courses so far. About 15% of the users that take free courses come back and take a paid course. Udemy takes 3% of the course fee when a tutor brings that student to Udemy. If the student is an existing Udemy user taking a paid course, the split is 50-50.