<p id="speakable-summary">Berlin-based language learning service <a href="https://www.babbel.com/" target="_blank" rel="noopener">Babbel</a>
Berlin-based language learning service Babbel was supposed to IPO on the Frankfurt stock exchange in late September. But only a few days before the initial listing the company pulled the plug with an eye on the developing Evergrande debt crisis that made the global stock markets very nervous. It has yet to announce a new date, but as Babbel CEO Arne Schepker told me, the company continues to monitor the markets.
Scrapping the IPO was clearly unexpected for everybody, though. “It was disappointing for the team that worked on it — worked hard and long — and we were doing really well,” Schepker said. “We had our books covered, we were on the right trajectory, met more than 100 super-interesting investors, got fantastic feedback — and then the Evergrande situation unraveled, which pulled the plug on most of the IPO markets. We were faced with a very conscious decision of do we launch ourselves into that market, yes or no?”
Schepker is confident that the company made the right decision, something the team was able to do because Babbel is well-funded and has plenty of cash in the bank, as well as other financing options to continue to invest in its products and make acquisitions as opportunities arise.