Growth
Education
Finland
Last updated March 26, 2018
WordDive is a unique, AI-based application for learning languages. At the moment, we have over 430 000 happy users in 150 countries, 96% customer recommendation rate and revenue of over 1.4 million euros (2017).
Growth
Stage
20
Employees
2010
Founded
Financial information
Rows marked with an asterisk are estimates.
Revenue EBITDA
2020* 14.600.000 EUR 500.000 EUR
2019* 5.100.000 EUR -1.300.000 EUR
2018* 1.800.000 EUR -300.000 EUR
2017 1.425.000 EUR -213.000 EUR
2016 963.000 EUR -215.000 EUR
2015 552.000 EUR -152.000 EUR
2014 318.000 EUR -164.000 EUR
2013 140.000 EUR -183.000 EUR
2012 110.000 EUR -205.000 EUR
Latest news

WordDive share issue 26.3.-20.4. on Around.fi

We have made an international breakthrough in teaching speaking skills and opened an issue of shares to fund the marketing and sales of the...

Business & market

Language learning is digitalising rapidly. The global digital language learning market is growing at a yearly rate of 7.4% and is estimated to be 5.2 billion euros in 2020. This critical period offers WordDive and its groundbreaking AI-based application an immense opportunity for growth.

Business & market

Our revenue has grown 918% in four years from 2013 to 2017. We also have an exceptionally high repurchase rate. In Finland, the Customer Lifetime Value (CLV) of our web subscribers is 105 euros, with the CLV of mobile users approaching the same level. According to our customer research, 98% of high school seniors and 96% of other users recommend WordDive, and recommendation-based sales form a significant amount of our total sales.

Our strategy is to concentrate on markets that spend a significant amount of money on digital language learning. Our growth markets in 2018 are Sweden and Germany, with China and the USA joining them from 2019 onward.

The growth of the field is driven by Chinese consumers, who benefit immeasurably from fluent English skills in the increasingly tough competition for good schools and jobs. China is clearly the largest market for digital language learning, approaching a billion euros in our estimate.

Last year, we developed a prototype of an AI-based innovation that can help the learner to speak English in only a few dozen hours. Our prototype is already 93% accurate in recognising pronunciation errors that affect understandability. With the aid of artificial intelligence, we can give each user personalised instructions for correcting the errors. The prototype’s Net Promoter Score of 64 anticipates strong recommendation-based growth.

With this innovation, WordDive is the first mover on the digital language learning market capable of providing a turnkey language skills solution. Our next goal is to increase the revenue 900% in three years, in other words, to exceed 14 million euros in revenue in 2020. By 2025, we aim to hold 5% of the digital language learning market, which equals a revenue of roughly 400 million euros.

At the moment, there are plenty of applications on the market for learning vocabulary and basic grammar. The number and popularity of these applications shows how great the need for digital language learning is. However, WordDive’s new, AI-based solution takes digital language learning to a whole new level. It will quickly give the user the ability to speak in a foreign language in different work, studying and everyday life situations.

Based on the prototype, the following skills are estimated to be gained in approximately 75 hours:

  • Vocabulary and grammar, 45 hours (existing app)
  • Pronunciation, 20 hours (Speak with AI innovation)
  • Word stress in speech, 10 hours (Speak with AI innovation)

We believe that personalised teaching of speaking skills will give WordDive a significant advantage on the global digital language learning market. The essential thing is to be successful on the most competitive markets, because the forerunners on those markets are likely in the long run to take over the markets in the rest of the world as well.

WordDive is a scalable, fully digital service, which means that as revenue increases, a larger percentage of income can be used for customer acquisition. This, if successful, will further accelerate growth. Our primary means of customer acquisition is paid advertising, which can be scaled rapidly when it is found to be profitable.

During the last two years, we have been investing systematically in developing our in-house marketing know-how. This enables competitive customer acquisition in Europe and in the USA mostly without third party assistance. In China, however, we are preparing to launch with a local partner Zes Mob Ltd.

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Our team

Timo-Pekka Leinonen

Founder, CEO

LinkedIn

Learning foreign languages was very difficult for Timo-Pekka. Regardless, he wanted to learn Japanese, and so WordDive was born. Together with his language teacher mother, he developed a prototype that enabled him to learn so much Japanese that he ended up working in Yokosuka and Tokyo in 1998–2000.

Juha Rintala

Chief Technology Officer

LinkedIn

WordDive's programming guru Juha was also WordDive's first developer. Juha is an expert on back-end, web, databases and cloud services, but these days his main job at WordDive is managing the entire product development as well as further development of the algorithm behind the AI.

Antti Arvio

Founder, Chair of the Board

LinkedIn

Currently the director of global partner program at M-Files, Antti has been in sales management positions for 20 years. Thanks to his long career at Nokia, Antti has a lot of extremely valuable experience of marketing mobile technology products internationally.

Lauri Leinonen

Chief Marketing Officer

LinkedIn

Lauri is a marketing professional with an impressive track record in customer acquisition in digital channels. Lauri has been responsible for WordDive’s marketing strategy since 2014, and in that role, he has successfully grown the revenue of the company tenfold in 4 years.

Our story

WordDive Ltd was founded in 2009, and the first version of the browser-based language learning service was released the next year. In 2011, WordDive was awarded as the best e-learning service in Finland. Our iOS mobile application was awarded as the best mobile service in Finland in its first year in 2014.

The application uses artificial intelligence to recognise when the user has learned each item permanently. This makes it possible to optimise learning speed and the study items coming up in exercises individually for each customer. The use of multiple senses supports fast learning and achieving comprehensive language skills.

WordDive customers are goal-oriented adults or young adults who want language learning results fast. At the moment, our application offers 10 languages to learn, hundreds of courses, and English and Swedish prep courses for high school seniors.

The prep course, launched in 2014, became the Finnish market leader in just two years. The penetration rate of our prep course in Finland in 2017 was 48% (prep courses sold divided by the number of students taking the matriculation exam).

WordDive’s main pricing model is subscription 9,99 €/mo. Customers can also make a one-time purchase of 3, 6 or 12 months. The English prep course sold in Germany costs 89 €. In Finland, the English and Swedish prep courses cost 79 € and 59 €.

Last year, we developed a prototype application that teaches foreign language speaking skills with artificial intelligence (AI).

See video of the prototype: www.worddive.com/swaie

Artificial intelligence raises speech recognition to a whole new level. It recognises pronunciation errors that impact understanding and helps every user to correct them individually. This is an international breakthrough which, according to our estimate, will have good IPR protection opportunies during the starting product development phase.

The cornerstones of our rapid international breakthrough goal for 2018-2020 are releasing a clearly distinctive, superior product that sets us apart from the competitors, and a tight focus on selected markets in order to achieve strong brand recognition and therefore profitability. Growth in the coming years will be achieved by investing in customer acquisition by digital marketing.

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Funding & Documents

WordDive Oy has raised 1.22M EUR in 1 funding rounds with a latest valuation of 5M EUR

Funding rounds
Date Amount
Jan, 2017 1.220.000 EUR
Documents

Other documents

Asiakastieto Rating Alfa Report December 2016 Download
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