Kahoot, the Oslo-based startup known for its gamified e-learning platform, is set to go fully private in an all-cash private equity deal led by Goldman Sachs Assets Management, valuing the company at $1.7 billion. The deal also includes existing Kahoot backers General Atlantic, LEGO Group’s KIRKBI Invest A/S, and Glitrafjord, controlled by Kahoot CEO Eilert Hanoa, among others. Despite the premium on Kahoot’s publicly traded shares, the valuation is a step down from the company’s peak during the COVID-19 pandemic, reflecting the struggles tech companies face in the current economic climate.
Kahoot has seen significant growth due to the rise of remote learning, hosting hundreds of millions of learning sessions with 9 billion participants in over 200 countries. However, like many tech businesses, it has struggled in the public markets post-pandemic. The company’s Q2 financials showed $41 million in revenues, up just 14% on last year, and cash equivalents of $96 million by the end of the second quarter. Despite not being at its peak valuation, the private equity group believes in the long-term opportunity of Kahoot.