5 AUGUST 2021: LiveKid- a leading Central European parent-kindergarten contact app & platform, has raised $2.4 million in a seed round led by Polish Stock Exchange-listed JR HOLDING SA and Nunatak Capital, with participation from IMPERIO SA. In total, investors acquired 22.61% shares valuing the company at $10.6 million.
LiveKid was founded by Polish entrepreneurs Jakub Pawelski and Mateusz Kulesza to simplify parents-keepers communication and kindergartens’ management. With LiveKid, all matters related to daily childcare can be done with one app.
Parents can easily communicate their children's needs, absences or food preferences on an ongoing basis and watch their kids' activities during the day, viewing photos and videos. The tool also handles payments. Only in June, parents generated $3.4 million throughout LiveKid. LiveKid solves the challenges of day-to-day operations for principals and teachers, empowering kindergartens and nurseries owners across Europe with the tools they need to run their businesses successfully. Instead of spending hours on time-consuming tasks like payments and duties related to the facility's functioning, principals and caregivers can focus on their craft.
Over 150 thousand parents are now using the tools offered by LiveKid, kindergartens and nurseries every single day, along with over 1,300 educational institutions across Europe in countries like Spain, Switzerland, Germany and Poland. Only in June, parents generated $3.4 million in payments through LiveKid.
Poland is LiveKid’s largest market. Proceeds from the Seed round will be used to support fast-paced expansion plans across Europe, including scaling up the market-leading product to ensure the best user experience and seeking out non-organic growth opportunities, including future acquisitions. So far, LiveKid took over the Polish-Canadian Baby Manager - the children's mobile diary and Przedszkolowo.pl - the most extensive base of kindergartens in Poland. This latest transaction will enable the company to build a digital childcare ecosystem across all of Europe.
January Ciszewski, President of the Management Board of JR Holding, said - "The founders of LiveKid in just three years, without any external funds, built a great application that conquered the Polish market, generating millions of dollars in revenues. I believe that thanks to the capital injection, in a few years, LiveKid will become the undisputed market leader all over Europe".
Jakub Pawelski, founder and CEO of LiveKid, explains: "We are the leader in digital services and products for childcare up to 7 years old. LiveKid's portfolio also includes an application for child development, a database of kindergartens and several other services, including insurance and education. We assume that a large part of the revenues will come from other business lines".
The lure of the child care market
The early childhood education and care market and the demand for digital and interactive products and services for children is growing dynamically. There are more than 31 million children in European countries under the age of 6 yo., representing 6.1 % of the EU-28 population (1). At the same time, the global market for child care reached a value of nearly $339.1 billion in 2018, having grown at a compound annual growth rate (CAGR) of 8.3% since 2014, and is expected to grow at a CAGR of 11.3% to nearly $520.4 billion by 2022.
The growth is an opportunity for LiveKid. One of the main market-trend-based strategies for the child care market will include leveraging technology to optimize services and enhance customer satisfactory levels, using AI technology for better childcare management, and adopting interest-driven learning methods to make learning more enjoyable for children. (2).
"The market for goods and services for children aged 0-6 is low-digitalized and fragmented. To take advantage of the market, the child care companies will need to focus on technological advances. Thanks to data science tools and proven dynamic growth, LiveKid becomes a strong candidate for dominating the child care market." - says Piotr Ciżkowicz, Managing Partner of the Nunatak Capital fund.
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