The world of language learning startups is going international. Today, Berlin-based Babbel, which creates online and mobile-based language learning courses, is buying PlaySay, a TC Disrupt finalist that focused on creating mobile apps that turned the process of learning languages into a game — modelled somewhat loosely on the back-and-forth paired-play concept of “Draw Something.” Financial terms of the deal were not disclosed, except to note that the acquisition was being made out of operational cashflow.
Babbel says that it will be using the acquisition as a way to better tackle the U.S. market. The company already says it has some 15 million users worldwide, with 8 million downloads of its language learning apps and 200% annual growth. Languages covered by Babbel include Spanish, English, French, German, Italian, Portuguese, Swedish, Turkish, Indonesian, Polish, Norwegian, Danish and Dutch.
PlaySay is not disclosing how many users it had of its English/Spanish app at the time of acquisition, its founder and CEO Ryan Meinzer does point out that it picked up about 100,000 users within a month of launching its iOS-based service last year. At that time, it had secured $820,000 in backing from Novak Biddle Venture Partners and executives from PayPal and HigherOne; along with a distribution deal with Harper Collins.
The deal will see PlaySay close down its service and “invite” current users to join Babbel. Meinzer himself will be coming on as an advisor, as he now has a full time job at Salesforce’s Heroku. He declined to tell TechCrunch what that role is, saying only that “it’s to make the awesome company even awesomer.”
The deal is in part a way for Babbel to expand more into the U.S. market — and, in Meinzer’s words, apply some of PlaySay’s learnings around gameplay to its wider portfolio of services — but it is also a reaffirmation of PlaySay’s emphasis on the mobile platform as a key entry point for language education.
“Education is going mobile,” said Markus Witte, CEO of babbel.com, in a statement. “This acquisition represents a continuation of our strategy to offer a complete range of mobile solutions to language learning and the possibility to leverage market share in the US.”
Markus Witte (CEO) and Thomas Holl (CTO) will make their first visit to Ryan in San Francisco in the first week of April.
Markus Witte, Ryan Meinzer and Thomas Holl will be available for interviews in San Francisco in the first week of April.
Link to the iTunes Store:
About babbel.com:
babbel.com is the new way to learn languages. With the online language learning system, both beginners and continuing learners can study Spanish, English, French, German, Italian, Portuguese, Swedish, Turkish, Indonesian, Polish, Norwegian, Danish and Dutch through interactive listening, writing and speaking exercises. The website babbel.com offers numerous online courses with over 6,500 hours content. In addition there are vocabulary trainers for iPhone, iPod Touch, Android, Windows 8 and Windows Phone, Kindle Fire as well as interactive eBooks and a full-featured app for the iPad. More than 15 million people from over 190 countries are already learning a language with babbel.com. Babbel.com is operated by Lesson Nine GmbH in Berlin. The company was founded in August, 2007, and now has around 170 employees and freelancers. Since July, 2008, Lesson Nine has been involved with Kizoo AG and VC-Fonds Berlin. Further information at: http://www.babbel.com or http://www.crunchbase.com/company/babbel
For images of app or founders please visit: https://www.dropbox.com/sh/rtmq9brq6jr1moo/mE0KqxI1Gi
About PlaySay and Ryan Meinzer:
PlaySay is an iPhone game connecting language learners so they can have real conversations with pronunciation feedback. A 2011 TechCrunch Disrupt Finalist PlaySay is backed by the most active VC’s in the education space of the USA (Novak Biddle Venture Partners). The company has closed premium content deals with one of the largest publishers of language learning books and materials (McGraw-Hill) along with the largest foreign language learning dictionary publisher of the world (HarperCollins).
Ryan Meinzer’s areas of business expertise are sales, new product development, business development and international expansion. Before PlaySay, Ryan led the international business of a Japanese marketing firm in Tokyo, Japan with Fortune 500 and major multinational clientele. Ryan will now be joining the team at Heroku (owned by Salesforce).
