StudyFree

StudyFree is a platform for helping admission to foreign universities. According to the information on the project website, by December 2021, thanks to the service, 70 thousand students received the opportunity to study abroad, and the share of successful admissions is 98%. More than 300 thousand training programs with the payment of scholarships in 100 countries of the world are available on the site. The startup was launched by Russian Daria Kroshkina.

History

2023

Skyeng's refusal to buy StudyFree due to employee debt

In March 2023, it became known that Skyeng refused to buy StudyFree amid a scandal that centered on an educational start due to non-payment to employees and customers.

On March 24, 2023, Forbes magazine, citing Skyeng CEO Rustam Ainetdinov, wrote that it had followed the development of StudyFree for several years and considered it a valuable asset. Negotiations on the potential purchase of StudyFree assets in Russia and the CIS began in November-December 2022.

Skyeng refused to buy StudyFree startup owed to employees

In mid-February 2023, Skyeng's board of directors pulled out of the deal. The CEO of Skyeng explained that the company at the start underestimated investments in the development of StudyFree. He refused to disclose the amount of necessary investment and other details.

Aynetdinov says that the parties discussed "partial repayment of StudyFree debt to employees and coverage of refunds to customers," and the shareholders would not have received anything following the transaction. Former employees estimated the debt by January at $100 thousand, debts accumulated to customers and contractors.

The founder of the startup, Daria Kroshkina, confirmed to the publication that the deal had not taken place and said that by March 24, 2023, StudyFree was in talks with other potential buyers.

We are considering various options and forms of further development of Russian business without the participation of the American part, "she said, without specifying details. Kroshkina added that the issue of debts to employees, customers and contractors remains unresolved.

By March 2023, StudyFree is in an "imperfect situation," says Denis Efremov, principal of the Fort Ross Ventures venture fund. Therefore, the value of the startup's assets in Russia and the CIS could be estimated at $1-3 million depending on the object of purchase - a technology platform, customers, a team, he said.^[1]

The company is on the verge of bankruptcy

The company that helped enter foreign universities attracted $5.4 million is on the verge of bankruptcy, workers say in January 2023. It is known that TMT Investments and I2BF Global Ventures invested $1.8 million.

The founder of the collapsed startup StudyFree, Daria Kroshkina, found that she could answer her creditors and employees with debts.

Kroshkina got in touch from the "general group for startups" Andrei Doronichev from Google in San Francisco. Earlier, Forbes included her in the rating of "30 most promising Russians under 30 years old."

2021: Raising $3 million

In mid-December 2021, StudyFree announced the raising of $3 million from, I2BF Global Ventures, TMT Investments TechStars and other investors. Also, the round of financing was attended by CEO PandaDoc Mikita Mikado and ex-product Google director Andrei Doronichev. The parameters of the investment transaction, including the estimated value, were not startup disclosed.

The StudyFree team intends to spend the funds raised on finding new clients, expanding the global business, marketing initiatives and projects to develop the platform as a whole.

The platform founded by the Russian woman to help enter foreign universities StudyFree raised $3 million

The startup has a community of students with experience studying abroad. They help users register and apply for a grant. The startup earns from a subscription model. The program of support for applicants lasts from one to three years and costs 3200-6000 rubles per month (data for December 2021).

The main competitors of StudyFree are the ApplyBoard platform (the cost of this startup exceeds $1 billion) and traditional consulting agencies, writes TechCrunch. However, unlike agencies, students with experience of studying abroad act as mentors on the StudyFree platform, which help new users, the newspaper notes.

Mikita Mikado says StudyFree has transformed the consulting market - not only by digitalizing these services within the app, but by "creating human capital and community around its product."^[2]

Notes