English learning app ELSA secures $15m to expand globally

Edtech startup English Language Speech Assistant (ELSA) announced it has raised US$15 million in a series B round co-led by Susquehanna International Group (SIG) and Vietnam Investments Group.

Existing investors SOSV, Google’s AI-focused venture fund Gradient Ventures, and Monk’s Hill Ventures also participated in this round, along with new investors Endeavor Catalyst and Globant Ventures.

ELSA co-founder and CEO Vu Van / Photo credit: ELSA

Founded in 2015 by Vu Van and Xavier Anguera, the US-based startup helps people improve their English-speaking ability. The platform listens to how learners pronounce words, sentences, or conversations to pinpoint errors and provide real-time suggestions on their pronunciation mistakes.

The edtech startup recently piloted its business-to-business offering with schools and companies in Vietnam and India and is now set on creating a “scalable” platform that allows cooperation with corporate partners around the world.

The capital injection will go toward research and development to bolster its voice recognition AI, develop its B2B platform, and hire new talent.

Moving forward, the edtech startup’s geographical expansion will focus on Latin America, Vietnam, India, and Japan, where it claims to have seen a 5x growth last year. The startup anticipates additional demand in 2021.

Now with over 13 million users worldwide, ELSA claims it doubled its customer base and increased revenue by almost 300% since last year.

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Similar players in the space include Y Combinator-backed Cambly as well as Duolingo, which was valued at over US$2.2 billion after securing US$35 million in new funding in November last year.