SoftBank has announced an investment of $215 million in Kahoot, thereby receiving a 9.7% stake in the company. It is known to invest in the gaming and online education market. It has backed the likes of Supercell, a European gaming start-up (majority-owned by Tencent), and also Unacademy, an e-learning start-up in India.
SoftBank’s investment of $215 million in Kahoot to be used for new partnerships, acquisitions, and joint ventures
The Oslo-based firm stated that it would sell 43 million new shares for a price of 46 Norwegian krone i.e. $5 per share to SoftBank. With this investment, CEO Eilert Hanoa said that it proposes to grow via new partnerships, acquisitions, and joint ventures.
Hanoa further stated that the start-up is all about bringing a switch in the mindset from digital tools being an additional set of features in schools and classrooms to be an important tool to create engagement.
Kahoot secures funding of $28 million as remote learning gains momentum in pandemic
With coronavirus pandemic forcing to shut down schools and increasing demand for remote learning, educational technology has enjoyed a boom in the market. Investors have immediately taken notice of the same with Microsoft investing close to $1 million in the UK based computing start-up Kano.
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Similarly, Kahoot was also successful in securing funding of $28 million in June. Since the start of the year, the firm listed in the Oslo’s Merkur Market observed its shares rise exponentially over 150%. CEO Hanoa will launch an initial public offering on Norway’s major stock market in early 2021.
He stated that they have successfully gathered around 8,000 shareholders. By doing an IPO on the main list of the Oslo Stock Exchange, Hanoa believes that it would increase its investor base even further.
Kahoot’s shares rise by 12% after SoftBank’s investment announcement
Kahoot is a Norwegian start-up founded in 2012 as a game-based learning service. It allows players to take quizzes based on having multiple-choice questions. Its’ one side of the platform is aimed at schools and e-learning whereas the other side focuses on corporate clients who are looking for training sessions and presentations.
Presently, with the game-based learning model, it has 1.3 billion participating players. Around 200 million games are played with 100 million user-generated Kahoots in the last 12 months.
After the announcement of SoftBank’s investment in Kahoot, its shares rose by almost 12% in the morning trading. It currently has a market value of 19.9 billion in Norwegian krone i.e. Around $2.2 billion.