LinguaLeo is an online educational language learning platform established in 2010 in Russia that has grown to over 10 million users. It offers free basic access and paid premium features such as online lessons and courses. LinguaLeo employs a freemium business model and generates revenue through additional paid services and conversions of active free users. The company has experienced strong growth in recent years and is currently valued between $80-100 million.

1. Educational web-service for learning and practicing English language online, built on
gaming mechanics.
Established: 01.03.2010 | Site: lingualeo.com | Placement: Russia, Moscow
Business model
LinguaLeo is based on the freemium
business model, which includes:
1) Free limited access to content:
- language trainings
- video and text lecturers
- online dictionary
- progress test
- building of individual educational path
2) Paying unlimited access to content
and additional services:
- on-line lessons with real teachers
- wide range of paid courses
- certificates of accomplishment
Company have good relationship with
business partners, which are:
- Cousera
- TED
- Evernote
- British Council
Auditory and markets
86%
14%
CIS
Other
Total auditory – 10,5 mln,
structured
Service is represented in free markets:
and on all key platforms:
- as a web-site
- as an application for web-browser
- as a mobile application on
iOS, Android and Windows Phone
> Key drivers of average check are
additional services
> Key driver of number of clients
growth are Spanish market
base market from 2014 from 2014
Team
Total number of employees – 60,
management includes:
Aynur Abdulnasyrov,
Founder, ex-CEO, strategy director
Dmitry Stavisky,
ex- top manager of Evernote, CEO
> Skilled and experienced
management drives success

2. Company shows good performance last 3 years in terms of number of customers and
revenue growth.
Current company value lies in gap $80-100 mln.
Financial performance
Structure of capital
Risks and opportunities Press
Indicator 2013 2014 2015f
Number
of users 2 mln 7 mln 10,5 mln
Estimated
revenue
$ 4,5 mln $ 17 mln $ 24 mln
Estimated value ~ $ 80-100 mln.
assumptions:
1) Conversion rate – 4%
2) 20% of active users repeat purchases
Company`s capital divided between 3 main
share holders (real data is closed):
1) Aynur Abdulnasyrov – founder
2) Igor Ryaben'kii, Rudy Yegor,
Sergei Kuznetsov – business angels,
invested $0,2 mln in 2010
3) Altair – fund invested $0,2 mln in 2011
4) Runa Capital – fund invested $3 mln
in 2012
Company have good opportunities to grow
further:
1) Emerging markets (Turkey, Brazil) have
high potential of new users
2) Global educational trend to learn
languages stimulates users stream to the
company
3) New educational techniques can attract
new users
But there are some significant risks too:
1) The company have global competitors
with similar business models and
comparable amount of users (Busuu,
Duolingo, Babbel, Languagecourse.net)
2) Conversion rate is very small: only 4%
of users buy courses or “golden status”,
and only 10-30% of them do it again
3) Expansion risk, because the future
value dramaticaly depend on possibilite to
entier new markets
The latest articles about the
company:
22.12.2014
RBC: “Lingualeo has released a
brand new personal service for
online-education. Start up’s
struggling with the user’s low
involvement”.
19.12.2014
Habrahabr: “Mobile app was
integrated with TED Talks”.
14.11.2014
Siliconrus: “Founder of 500px
and employee of Lingual tells
about Yandex”.
06.10.2014
LingueLeo press release:
“Company starts to cooperate
with Coursera”
30.09.2014
LingueLeo press release:
“Start up announced a partnership
with British Council”
> The company shows good results
last years
> Global trends can provide good
results, but there are some risks too
> News background is
positive

3. 19.03.2015
This tizer is prepared by part of team #4:
Artem Nikulshin:
- Risk evaluation
- Building financial
model
- Research
Akim Nikitenko:
- Press search
- Research
- Company analysis
Lev Feofanov:
- Risk evaluation
- Research
- Company analysis
Artur Kiniagulov:
- Presentation
drawing
- Building
financial model
- Research