Udemy Raises $421M in IPO, Sells 14.5M Shares at $29 Each

UTC by Ibukun Ogundare · 3 min read
Udemy Raises $421M in IPO, Sells 14.5M Shares at $29 Each
Photo: Depositphotos

Insight Partners is one of Udemy’s biggest investors, and it now owns over 30% of the company’s shares after the listing.

American online course provider generated $421 million in a top-of-range initial public offering (IPO) on Thursday, 28th October. The online learning and teaching marketplace sold 14.5 million shares at $29 each, the high end of its marketed range. Following its IPO, Udemy will begin to trade on the Nasdaq beginning from the 29th of October. The online academy will start trading with a fully diluted market capitalization of more than $4.5 billion. Last November, the company was at $3.3 billion valuation in private investment. The company raised $50 million in a Series F funding round.

When Udemy debuts on the Nasdaq after the completion of its IPO, the company will trade under the ticker “UDMY.”

Insight Partners is one of Udemy’s biggest investors, and it now owns over 30% of the company’s shares after the listing. According to a filing with the US Securities and Exchange Commission (SEC), there are other top shareholders. They include MIH Edtech Investments and Norwest Venture Partners.

Founded in 2010, Udemy offers over 183,000 courses in 75 languages to its more than 44 million learners. According to PitchBook, the online academy is available in over 180 countries and has over 1,000 employees. Udemy consumers consist of students and professionals. Individuals also take up courses on the platform while companies register their employees to acquire more certificates from their online academy.

Udemy Before IPO

During the global lockdown last year, Udemy became a run-to-place for both teachers and learners long before the IPO. A lot of interested learners- both new and existing customers- registered for courses on the platform. On Udemy, learners rely on online videos in their course of choice. According to the company, over 201 million courses were enrolled last year. Udemy saw its revenue grow to $429.9 million in 2020. The revenue is a 56% surge over the $276.3 recorded in the previous year. In addition, revenue grew 24% to $251 million year-over-year in the first half of 2021. Also, net losses reduced from $51 million in 2020 to $29 million.

Even as Covid-19 restrictions ease and schools begin to resume physical classes, Udemy believes that the online learning trend will continue. In its prospectus, the online education platform said:

“The shift to online learning has been ongoing for years, and the Covid-19 pandemic has further accelerated this shift. According to the World Economic Forum, 84% of employees surveyed report that the Covid-19 pandemic has increased the need to digitize.”

Udemy also mentioned its rivals in the risk-factors section of the prospectus. The company acknowledged that its competitors include Coursera Inc., LinkedIn Learning, and Pluralsight Inc.

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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