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The educational technology company Coursera (NYSE: COUR) went public on March 31 and began trading as high as $62 and later stabilized to $45. This gave the company an estimated $5.9 billion dollar market cap.
Coursera was founded in 2012, offering courses and certifications for companies, universities and anyone with the drive to learn new skills through its platform. This has been taken as an attempt to disrupt the $2.2 trillion global education industry.
Can Coursera become a new educational giant and create a new educational market?
Let’s Have a Look At Coursera
Coursera was founded in 2012, and its current CEO, Jeff Maggioncalda, joined in 2017. Coursera’s customer base has companies, governments, universities and individuals in the mix. Their registered learners come to their platform to learn and gain new skills for current and future professions.
It currently has around 77 million registered learners. Students learn content from other careers they might find helpful in their field, and enterprises use the platform to train workers and help them develop new skills. Universities complement their curriculums with additional courses. Coursera Business launched in 2016, and it currently has over 2,000 companies paying for its services. Additionally, multiple government agencies pay for Coursera’s content, as stated in their pre-PIO filings.
Coursera is a platform that offers courses and multiple degrees on a wide variety of subjects and prices. Users can spend from $10 up to well over $35,000 for a full degree.
This is an incredibly valuable proposition because it breaks the mould.
If their platform, content, educators and courses keep increasing in size. One-time purchasers might be coming back to take multiple classes.
Coursera might become a key player in the Education industry
Digital companies face difficulty when venturing into the education industry. Less than 4% of global education expenditure is spent on digital solutions.
However, the 2020 pandemic forced the world to take education remotely. It gave Coursera a growth that probably won’t repeat itself any time soon, as many people end educators became aware of its presence and complementary opportunities.
Not only that. The perceived value for higher education institutions in the U.S. became devalued as students around the county claimed that they were not getting their money’s worth. This is especially true for industries that do not require specialization to work on it, unlike Law or Medicine degrees.
This makes digital education institutions like Coursera, where courses, degrees and skillsets for multiple industries and companies are readily available at affordable price points, very tempting.
Coursera has a mission to help anyone build the skills they need to succeed in their careers. If it were to become a key player in the education market (which is currently evaluated over $1 trillion dollars) it will become a giant company and require patience from its investors.