What is Kahoot's business model?

Kahoot! for most of its existence was a free service, now it has a freemium business model.

Kahoot! ostensibly has three revenue streams:

-Kahoot! Plus was launched in October, 2017. It allows business to “Gamify internal training sessions, presentations, and team building activities to make them fun and engaging”. Pricing is 99 dollars a year or 14.95 a month. A free trial is offered.

-Kahoot! Pro was launched in February of 2018. It allows business to promote their products and services to customers and partners. Pricing is 199 dollars a year, which is an introductory price compared to standard pricing of 239 dollars.

-Ad Revenue on their free services.

Right now Kahoot needs to be watched carefully as they have taken in about 26,5 million dollars in investor capital. Former CEO Erik Harrell stated in August of 2017, that it will be difficult to raise new investor capital without commercializing the product.

On the 27th of February, 2018 the new (and former) CEO Åsmund Furuseth stated first income for sales occurred on the 3rd of November, 2017. Adding, it’s difficult to find firms who will not use Kahoot! for free, and pick up the paid version. In the same report, Chairman, Eilert Hanoa, made forward statements that within the next few weeks Kahoot! will have 5,000 users paying about 10 dollars a month each. The 2018 financial goals are to bring in revenues of two million dollars. Kahoot! will be seeking an additional 15 million from investors in the Spring of 2018. (Source : Kahoot sikter mot 100 millioner – sjefen slutter fordi han ville gi mer gass ).

The next signal that will be available could be as early as the end of May when Kahoot!’s 2017 tax reports are due, although it is possible to file for an extension. Another signal would be the outcome of attempting to raise the 15 million dollars in capital Kahoot! is seeking. Whatever the signals 2018 will be a decisive year for Kahoot and they will need to demonstrate to investors they are able to convert users into customers.

Kahoot! has been incorporated as a private Norwegian stock company since December of 2011 and investor funding has increased significantly since 2016:

Fall 2016 - 10 million dollars - Microsoft Ventures, Creandum, and Northzone
Spring 2017 -10 million dollars - Microsoft Ventures, Private Investors.
Spring 2018 - Seeking 15 million dollars, 2 million dollar revenue goal.