London-based ‘Spotify for textbooks’ Perlego bags €18.1M from former Tesco CEO Sir Terry Leahy, others

London-based Perlego, an edtech company, announced on Monday that it has secured $20M (approximately €18.1M) in funding led by former Tesco CEO, Sir Terry Leahy.

Sir Terry Leahy says, “Perlego is addressing one of the most pressing challenges in modern education – access to essential learning materials. This investment is a vote of confidence in Perlego’s innovative approach to learning and the platform’s potential to reshape the educational landscape.”

“Investing in the futures of young people has always been a passion of mine, and I am particularly committed to funding research in areas of regional disparity. I look forward to seeing how the business continues to transform access to education and I am incredibly proud to play a part in the journey that aligns so closely with my own values,” adds Sir Terry Leahy.

ITHAKA, the company behind JSTOR, the digital library of academic journals and books, 

MediaHuis, Raine, KPN Ventures, and the founders of Kahoot, also participated in the round.

The latest round brings the company’s total funding raised to $75M (approximately €68M).

The latest raise will allow the company to expand its footprint, serve more learners and institutions internationally and utilise AI to power new products designed to improve access to academic content.

Announced AI-powered research assistant

Besides funding, the company also announced the launch of Dialogo, an AI-powered research assistant designed to enhance the research process.

According to the company, it enables students to easily locate relevant sources in its library, provides an overview of the results, and directs students to the full text of every cited title.

Gauthier Van Malderen, Founder and CEO of Perlego, says, “This investment represents a vital opportunity to drive meaningful change in education and AI more broadly. We’re passionate about providing accessible yet game-changing solutions to education. With the support of Sir Terry Leahy and our strong team of investors, we are excited to accelerate our growth and continue to empower learners worldwide.”

Birth of Perlego

The idea for Perlego was born when its founders, Gauthier Van Malderen and Matthew Davis, encountered the high cost of textbooks as students.

Textbook prices are continuously rising, making it difficult for students to afford the necessary resources.

Some students turn to piracy and second-hand books, while many others are completely priced out of the education system.

This not only restricts students’ access to knowledge, but also affects researchers, authors, and the publishing industry.

Consequently, Perlego was founded to offer an affordable (and sustainable) textbook solution for learners globally by collaborating with publishers and eliminating the expenses associated with print, distribution, and retail markup.

Perlego: Making education accessible

Founded in 2017, Perlego is a subscription-based digital library that aims to make learning more accessible by offering unlimited access to over one million educational titles. 

The company does this by partnering with thousands of international publisher brands, offering an unparalleled catalogue of academic, professional, and non-fiction content in six languages from the likes of Cengage, Routledge, Cambridge University Press, Elsevier, and Harvard University Press.

It is used in over 250 educational institutions worldwide.