AI Tutor Medly Raises $8M Seed Funding

London-based EdTech innovator, Medly, has successfully closed a $8 million (approximately €6.9 million) Seed funding round, signaling strong investor confidence in its mission to democratize personalized education. The capital injection was spearheaded by Felix Capital, with significant participation from existing backers Eka Ventures and Ada Ventures. A cohort of prominent angel investors, including Andrey Dobrynin (CEO at InvestEngine), Al Giles (Venture Partner at Creator Fund), Jean Hammond (General Partner at LearnLaunch Accelerator), and Hector Mason (General Partner at Episode 1 Ventures), also contributed to the round.

Founded by former NHS doctors and UCL medicine graduates Dr. Paul Jung and Dr. Kavi Samra, Medly is developing an AI-powered tutor designed to offer individualized academic support. The platform aims to bridge the educational equity gap, addressing the disparity where private tutoring provides a distinct advantage to those who can afford it. Dr. Jung highlighted the transformative potential, stating, “Our custom AI gives every child access to a 24/7 personal tutor that adapts to how they learn and responds to their unique needs.” He further emphasized the platform's impact, noting that a significant majority of students using Medly saw at least a one-grade improvement in their exam performance within a single season.

The EdTech market, particularly the segment focused on AI-driven personalized learning, is experiencing robust growth. Global EdTech market size was valued at over $100 billion in 2022 and is projected to expand significantly in the coming years, driven by increasing adoption of digital learning tools and advancements in AI. Medly's approach differentiates itself by offering a purpose-built, accuracy-tested AI solution, moving beyond the general capabilities of widely available generative AI tools like ChatGPT. The company's AI is grounded in neuroscience and pedagogical principles, utilizing a proprietary blend of seven large language models to tailor feedback and track student progress.

Medly's platform offers a unique conversational interface that provides instant feedback on practice questions and guidance on improving scores. Innovative features, such as handwriting recognition for tablet users, are integrated to enhance the natural learning experience, particularly for subjects like mathematics and chemistry. The service currently supports students preparing for major examinations including GCSE, IGCSE, A-Levels, and the International Baccalaureate, with an agnostic offering, Medly Open, also available for university students.

The impact of Medly's AI tutor is already evident in student outcomes. During the last GCSE exam season, 74% of students using the platform achieved at least one grade improvement, with an impressive 41% advancing by two or more grades. Notable gains were observed in Physics and English Literature, where grade improvements reached 46% and 43% respectively. The company is actively expanding its reach, having recently launched SAT preparation support in the US with promising early results, and plans to introduce AP and ACT modules by year-end.

This new funding will be instrumental in scaling Medly's user base within the UK and facilitating its expansion into new international markets. Furthermore, the capital will support the development of Medly's evidence base, building on its recent research paper comparing its AI marking performance to human examiners. The company also completed a large-scale randomized controlled trial involving over 1,000 UK students, specifically targeting lower-attaining schools to demonstrate the platform's efficacy in boosting academic attainment. Future development includes enhancing proprietary models for specific educational functions and refining pedagogical approaches.