181 paying customers in the first 2 weeks
Since launching its new English Teaching platform, and monthly subscription model Perfectly Spoken has seen a surge of interest… and paying customers.
In the 14 days post-launch, and with virtually no marketing spend, the platform has attracted more than 11,560 new users, with 181 of them now paying $10 to £$30 per month, for Perfectly Spoken’s on-line English language lessons.
Management is extremely pleased with this excellent early response and is confident of converting many more of the 162,000 students that have migrated across to the new platform, to paying customers.
The numbers make for excellent reading, and with the platform already built and working so well, the company is now eager to close off this initial round of just £100k, in order to boost its marketing efforts and ramp up its conversion rates.
By 2020, the British Council estimates that there will be 2 billion learners of English, 85% of whom will seek self-learning methods; and Perfectly Spoken has created an affordable and flexible solution to meet this massive demand.
Already attracting more than 160,000 users, monetising the company’s automated teaching platform through a subscription model, makes perfect sense.
A conservative 2.38% conversion rate for the company’s basic “Student” subscription model and 0.2% for its “Pro” subscription, will deliver a combined revenue of £440k in year 1, rising to £1.79m and potential net profit of £1.12m in year three.
Executed by a team that combines experts from online businesses and English language teaching, Perfectly Spoken’s platform offers a set of compelling benefits for subscribers, including certification and premium learning materials. This is why it is attracting such large user-numbers.
The digital learning market is currently valued at USD$3.8Bn and growing fast, reflecting an upward trend of learners transitioning from traditional classrooms to online. This EdTech boom has seen some well documented acquisitions in the hundreds of millions of dollars.
Now revenue generating and well beyond proof-of-concept stage, Perfectly Spoken is seeking just £100k of investment in this current round, at a modest pre-money valuation of £1m.
The company has a target valuation of £12.7m in 5 years’ time, meaning it is hoping to deliver investors a return of more than 12x in that period.
The offer falls under the Enterprise Investment Scheme, with a portion of the £100k available as Seed Enterprise investment (complete with 50% income tax rebate and other benefits). Please note, the SEIS allocation is on a strictly first come/first served basis.
To learn more about Perfectly Spoken you can click here. Available to download is a webinar pitch from Founder and CEO David De Jager and a full Information Memorandum.