SoftBank has retreated from its past investments. General Atlantic is buying out SoftBank's 15% stake in Kahoot, the Norwegian startup that provides a platform for people to build and use education focused games. SoftBank is losing money. The company received at least $215 million from the firm. 15% of Kahoot's current market cap works out to over a billion dollars.
There is no new investment coming in with the buy out. As we learn more, we will update. Kahoot plans to partner with General Atlantic to accelerate further growth, drive innovation, and expand its global footprint in homes, schools, and corporations.
Kahoot, like many other tech companies, is feeling the pinch of the general downturn in technology stocks. Its shares were trading at 70.25 on the stock exchange. They are worth only 22.77 Norwegian crowns. On the news of the investment/divestment, Kahoot had a 27% increase in its share price.
SoftBank has faced big losses in its Vision Fund investment vehicles due to the tech industry's downturn. The Vision Fund I lost over $17 billion in the first quarter. The funds that have been invested so far have seen Vision Fund 2's value decrease. It's no surprise that it's now selling stakes that aren't performing well. It is still working on a Vision Fund 3.
We are very thankful to SoftBank for their partnership. The CEO of Kahoot said that they are thrilled to add a partner of General Atlantic's caliber. The team at GA brings deep experience in scaling global education technology and software businesses and positioning market leaders for long-term success.
As digital learning solutions continue to be adopted across its work, school, and home markets, we think Kahoot has significant potential for further growth. With its well-loved brand, product-centered approach, and engaged global user base, Kahoot is well positioned to scale, and we look forward to supporting Eilert and the full Kahoot! team in the years to come. General Atlantic and SoftBank have partnerships in the past and that may have played a part in the decision.
Kahoot has grown a lot since the first investment by the SoftBank Group fund in October 2020. At that time, it had 1.3 billion users.
A big emphasis on user-created content and a way of using what you have made for yourself or your own learning group, but also dipping in and using material made by others has worked to diversified deeper into enterprise and more. 99% of Fortune 500 companies use Kahoot! at Work and 9 million teachers use Kahoot! at School to teach. Kahoot! at Home and Study has over 18 million users.
During the Covid-19 epidemic, the company doubled down on being one of the platforms to fill the gap of amusement and engagement for students who were no longer in classrooms, as well as for remote workers as a way of team building and more.
As more people return to the office, students are back in the classroom, and budgets are being reined in in the current economic climate, it will have an effect on Kahoot.
This post will be updated as we learn more.
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