EdTech platform Prep secures $7 Million Series A funding, co-led by Cercano Management Asia and Northstar Ventures

Prep, a Vietnamese online language learning and test preparation platform, announced a successful $7 million Series A funding round co-led by Cercano Management Asia and Northstar Ventures. The round also included participation from existing investors Touchstone Partners, East Ventures, and Saison Capital.

This investment will fuel Prep's expansion plans. The company intends to use the funds to grow its team, refine its learning tools, and develop new language products, and enter additional markets. Notably, Prep emphasizes maintaining profitability while scaling its operations and user base.

"Our ultimate goal is to provide every learner with the personalized experience of having a dedicated teacher and mentor," said Tu Pham, Prep's CEO. "This investment represents a significant milestone in achieving this vision."

Founded in 2020 by Pham and CTO Nam Tran, Prep has already amassed a rapidly growing user base in the hundreds of thousands. The company attributes its success to its proprietary AI technologies, including AI-powered Virtual Speaking and Writing Rooms. These AI tools allow Prep to deliver high-quality education at a fraction of traditional costs, making it accessible not only to students in major cities but also to those in underserved Tier 2 and 3 towns. Prep offers personalized study plans, interactive learning content, and AI-powered testing and role-playing rooms. Investors are impressed by Prep's technology-driven approach to education.

"We prioritize investments that leverage technology to increase access to quality education," said MJ Yu, Managing Director at Cercano Management Asia. "Prep's application of AI to drive positive outcomes in language learning and test preparation is one of the best we've seen in the region. We're excited to support their growth as they become a regional leader, expanding language offerings and entering new markets."

Melvin Hade, Managing Director at Northstar Ventures, sees Prep's potential to disrupt the Vietnamese test prep market, citing the increasing importance of English in higher education and the workforce. He also expressed excitement about Prep's planned expansion into new markets and its potential to become a leading Southeast Asian EdTech company.

Notably, all of Prep's original seed round investors participated in this Series A round. Existing investors reaffirmed their confidence in the company.

"We are honored to be Prep's early partner and continue supporting their mission of providing every student with a dedicated, personalized learning experience," said Tu Ngo, General Partner at Touchstone Partners.

Prep's continued success has also impressed other investors. "We're thrilled to double down on our investment in Prep," commented Wesley Tay, Principal at East Ventures. "Tu and his team are exceeding expectations, and we believe they will play a major role in democratizing upskilling opportunities across Vietnam and Southeast Asia."

Ziheng Li, Vice President at Saison Capital, shared his experience growing up in China and witnessing the vast test preparation market. "The online education market is booming and shows no signs of slowing down post-pandemic," he said. "We are proud to back a market leader like Prep."