- The company turns 10 years old now in April;
- Last year, Hotmart entered into a business combination with Teachable, a New York-based company.
Brazilian tech company Hotmart announced on Tuesday that it has raised $130 million in a Series C funding round led by the California-based private fund TCV, an investor of Netflix and Airbnb.
Alkeon Capital also participated in the round. Valuation has not been revealed, but Hotmart has now disclosed that it became a unicorn in a round of an unknown investor in March 2020. Thus, with the new investment, the valuation is certainly more than $1 billion.
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The company, which turns 10 years old now in April, will use the proceeds for growth initiatives including product innovation and international expansion, both organically and through mergers and acquisitions.
Currently, Hotmart has around 1,300 employees in 12 offices around the world (The Netherlands, US, Brazil, Spain, Mexico, Colombia, and France), and it is hiring.
Founded by João Pedro Resende and Mateus Bicalho in 2011, Hotmart is a global leader in the digital products market. In a pandemic world where businesses have been forced to digitize, Hotmart has grown, as the company sells online courses.
The study “Future of Online Education”, prepared by Hotmart, mapped that the number of people who bought their first digital product between 2019 and 2020 (ebooks and online courses, for example), grew by more than 161%.
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The number of people who transformed their knowledge, hobbies, and passions into a digital product increased by more than 167%. The most sought-after content is linked to topics such as business and careers, finance, relationships, and personal development, with an average growth of 101%.
Currently, Hotmart platform receives access from 3 million people per month to consume the contents purchased. Today, the startup has 23 million users, more than 316,000 products, and sales in 188 countries.
Hotmart’s offshore plans
Last year, Hotmart entered into a business combination with Teachable, a New York-based company that is one of the category leaders in the U.S. The combined gross merchandise value (GMV) transacted on the platform more than doubled compared to the previous year.
“Hotmart is at the forefront of the passion economy, helping creators go beyond content monetization and actually building an online business. By providing the tools for creators to leverage their knowledge, we are fueling a new model of internet-powered entrepreneurship,” says João Pedro Resende, CEO and co-founder of Hotmart, in a press statement.
“We are pleased with the contribution from our existing shareholders, including Koolen & Partners, General Atlantic, GIC and Accomplice. Since our beginning, we have had the opportunity of drawing from the experience and business support of global long-term partners, and this transaction with TCV further strengthens our shareholder base,” he adds.
As one of the largest digital enablement platforms, Hotmart is mission-critical for creators around the world to thrive by doing what they love and sharing their knowledge with consumers,” added Neil Tolaney, General Partner at TCV.
The American fund has helped guide CEOs through more than 125 IPOs, which may show Hotmart’s approach to public listing in the United States. Sought by LABS, the company’s press relations said there is no goal for an IPO right now.