Online English School for Kids
1
Executive Summary
Sector:
Business description:
Launched:
HQ:
Current language pairs:
Current status:
EdTech
Allright is a global platform for English learning for kids
2017
Ukraine*
Russian - English
Spanish - English
Polish - English
US$430k MRR
3x year-over-year growth
6.4k active learners monthly
39k lessons held monthly
US$6m revenue budget for 2020
* Establishment of a physical headquarters in Spain postponed until the end of COVID-19
2
Team
Oleg Oksyuk, CEO and Founder
Entrepreneur focused on EdTech and Marketplaces
with a strong tech background
• Founder and CEO at LiveExpert
• Lead developer in Tivella, acquired by Cisco
• MIPT graduate, Ph.D. in Video-Streaming
• Oleg’s two kids were teachers in AllRight
Dmytro Shilovsky, CTO
• Ex-CTO at LiveExpert (Oleg’s previous venture)
• Over 10 years of engineering experience
• MSc in Software Systems at Lviv Polytechnic
National University
• Heading a team of 12 developers in All Right
Bonnie Burton, Head of Curriculum and Teachers
• Ex-curriculum designer at 51Talk (leading Chinese
online English school with $600m capitalization)
• Professional English Teacher from Canada
Alexey Novikov, CMO
• Ex-CMO in Skyeng (the largest online school
of English language for adults in Russia)
• Launched SkyEng’s mobile app, 120k MAU worldwide
Flashpoint VC
• UK-headquartered VC fund investing in tech
companies from Emerging Europe and Israel
with US$150m AUM
Misha Lyalin, Zeptolab CEO
• Investor in 3 rounds and advisor
• 1.5bn smartphones have Zeptolab products
Investors
3
Market Opportunity
More than 500 million kids learn English worldwide,
mainly by traditional offline methods
The adoption of online education services has
increased due to the COVID-19 lockdown,
and we are ahead of the situation
We expect the consumption pattern to remain
after the lockdown is over
Our mission is to give the opportunity
to every child in the world to speak English
4
Unique Product Offering
Kids study with an
Online Tutor in All Right’s
Interactive Virtual Classroom
Kids learn by playing
with our AI Powered Tutor
with a voice-only interface
Same
curriculum
and
ecosystem
●
●
●
●
●
The platform and educational processes designed for kids
Real-time collaboration tools for teachers and students
Built-in modern materials created by own methodists
Lessons quality controlled by AI
Cross-platform functionality: PC/Mac and iOS/Android apps
●
●
●
Driven by Speech Recognition and Speech
Synthesis technologies
Our AI understands a speech of kids with
different accents and nationalities
Embedded in the classroom app
5
Competitive Landscape
Competition
with AllRight
Hybrid:
Online tutors
+ Gamified
application
AllRight (global):
Online tutors in
classroom +
Homework with
AI-powered tutors
Offline tutors
KidsAndUs (es)
EarlyStage (pl)
Online tutors
SkyEng (ru)
OpenEnglish (es)
Medium
Gamified
applications
LingoKids (global)
MyBuddy (global)
Low
Efficiency
Convenience
Affordability
• Quality controlled
by AI in a classroom
• AI-powered tutors
give extra time of
English learning
• Save travel
time
• Flexible
schedule
• Lessons with
AI-powered
tutors reduce
the average
cost
Global
scalability
• Mobile-first
CA channels
accelerate
global scaling
High
6
Market Sizing
Russian
-English
Polish
-English
Spanish
-English
German
-English
Italian
-English
French
-English
US$350m
US$100m
US$1bn LatAm +
US$250m Spain
US$500m
US$300m
US$500m
Very fragmented,
no clear leader
EarlyStage.pl
500 schools
Kidsandus.es
380 schools
HelenDoron.de
259 school
Hocus-Lotus.edu
79 schools
Mini-Schools
70 schools
High **
Low
Medium
Low
Low
Low
AllRight Launch
2017
2019
2019
3Q2020
1Q2021
2Q2021
Launch rationale
Fast MVP from
HQ in Ukraine
Culturally close
to Ukraine
The largest
language pair
with low
competition
2% of existing
AllRight students
are from
Germany
#1 EU country by
the number of
students in the
UK
Large language
pair with low
competition
Language pair
TAM* of US$3bn
(kids segment only)
Offline Leader
Online Penetration
(adults & kids)
** - Total Addressable Market size for the kids segment
** - AllRight’s estimation: High 10-15%, Medium ~5%, Low ~1-2%,
7
Global Scalability
Spanish & Polish language pairs:
●
●
●
●
●
Launched in March 2019
Share in total active learners of 8% over 13 months
Show a similar path of development as
the Russian-English language pair
2 years behind the Russian language pair
Expected to grow faster from September onwards
after pushing the mobile-first CA channels
MAU since launch by language pair
• Russian • Spanish & Polish
Months since launch
Spanish & Polish language pairs plan by the end of 2020:
●
●
$140k monthly cash revenue
20% expected share in the total revenue
German & French & Italian language pairs are expected
to launch in 2020 / 2021
8
Growth Trajectory
Monthly revenue, US$
●
●
●
●
Average lesson price: US$11
Lifetime value (LTV): 57 lessons, US$630
Retention, month-over-month: 92%
Repeat Revenue rate: 86%
Customer acquisition breakdown by channel, %
●
●
Customer acquisition structure is becoming
more diversified
We are developing mobile customer acquisition
channel around the AI-powered tutor app with
global reach and better targeting
9
Underlying Efficiency of Operations from Day One
Gross profit margin***, %
Net LTV* / CAC** = 3x @ MRR growth of 3x
CAC payback period = 5 months
Burn rate of US$100k per month
(at MRR US$430k)
ARR / Capital spent = 3.7x (US$5.2m / US$1.4m)
*** Net LTV after deducting tutors compensation, acquiring fees
and customer support costs
*** Cost of marketing and customer onboarding
*** Gross profit margin is Revenue less Tutors compensation costs
Actual
Plan
10
Projections
2018
2019
2020B
2021F
MAU, k
1.3
3.8
12.0
36.0
Revenue (US$m)
0.7
1.9
6.0
18.0
EBITDA (US$m)
(0.2)
(0.7)
(1.6)
(3.1)
YoY Growth
5x
3x
3x
3x
Language pairs
Russian
+ Spanish
& Polish
+ German
+ Italian
& French
11
Investment Opportunity
We are raising US$5M to more actively tackle the growing
market opportunity, strengthen the position in the existing
market and tap into new ones
Existing investors already committed US$1.1M into the round
in the form of a convertible note
Use of proceeds:
●
●
●
40% product development
30% marketing
30% pending new language pairs
Contact details:
Oleg Oksyuk, Founder & CEO
E-mail: oleg@allright.com
UA number: +38-050-848-8635
US number/WhatsApp/Viber/Telegram: +1-408-649-4444
12