SoftBank has invested $215 million in Norwegian education startup Kahoot, taking a 9.7% stake in the company, as demand for online learning platforms skyrockets during the coronavirus pandemic.
The Oslo-based firm said Tuesday it had agreed to sell 43 million new shares for at 46 Norwegian krone — or about $5 — per share to SoftBank. It plans to use funds raised from the deal to fuel growth through new partnerships, joint ventures, and acquisitions, CEO Eilert Hanoa told.
Founded in 2012, Kahoot is a game-based learning service that lets players create and take part in multiple-choice quizzes. One side of the business focuses on schools and home learning, while the other centers on corporate clients looking to make training sessions and presentations.
Edtech has flourished this year as the coronavirus pandemic forced schools to close and increased demand for remote learning software. That’s grabbed the attention of investors.
And Kahoot is no exception, securing a $28 million round of funding in June. The company, which is listed on Oslo’s Merkur Market, has seen its shares skyrocket over 150% since the start of the year. Hanoa said the firm now plans to launch a full initial public offering on Norway’s main stock market in early 2021.
Kahoot has been successful in its model so far. Shares of Kahoot shot up almost 12% in morning trading on news of SoftBank’s investment in the company. It now has a market value of 19.9 billion Norwegian krone — or roughly $2.2 billion.
