ApplyBoard, a startup that helps international students find opportunities to study abroad, announced today that it has nearly doubled its valuation in a little over a year. The Ontario-based company is now worth around $3.2 billion after raising a $300 million Series D round led by the Ontario Teachers’ Pension Plan Board.
ApplyBoard makes money from revenue-sharing agreements with colleges and universities. If a student attends a college after using their services, ApplyBoard receives a cut of the tuition. Meanwhile, the service, which helps students search and apply to schools, is free to use.
Co-founder and CEO Martin Basiri did not share specifics on revenue, but he confirmed that his company is growing its sales at a 400% year-over-year rate in 2021. For context, sales in 2019 hit $300 million, meaning that ApplyBoard is making at least $1.2 billion in sales this year.
These figures violate the prevailing edtech narrative from last year: Higher ed is dead! Students don’t want to attend college anymore. Bring back the gap year, but make it permanent!
Instead, this company is proving that the university tech stack is more lucrative than many assumed, especially if you look beyond content offerings and into back-end marketing support.
My take: Startups that help students navigate institutional bureaucracy so they can get more value out of their educational experience may become a growing focus for investors as consumer demand for virtual personalized learning increases.
ApplyBoard’s recent fundraising efforts shed a light on its strategy to become, effectively, a tech-savvy guidance counselor for the approximately 200,000 students that it has served to date.
The company raised a $55 million extension round in September to bring on a partner, Education Testing Services (ETS) Strategy Capital, the venture arm of the world’s largest nonprofit education testing and assessment organization. ETS helps administer the TOEFL English-language proficiency test and the GRE graduate admissions test.
The synergies there led ApplyBoard to launch ApplyProof, a service that helps admissions and immigrant officers verify documents that international students need to apply to colleges around the world. Today’s financing event similarly brings in a strategic investor, Ontario Teachers’ Pension Plan.
“The demand remains high post-pandemic and we continue to see a strong, pent-up demand from students wishing to study abroad,” Basiri said. “Students want a seamless and pain-free application process and be able to have all the information they need to make an informed decision.”