Perlego raises €70M to expand AI-powered digital library for universities

€70M funding round attracts nonprofit JSTOR’s parent, Ithaka

London-based edtech startup Perlego has secured over €70 million in new funding to grow its subscription library. The platform now offers 1.5 million books, including textbooks, monographs, and trade titles, through deals with academic publishers.

Ithaka’s investment signals shift in academic publishing

The latest funding round includes Ithaka, the nonprofit organization behind the academic database JSTOR. The investment bridges commercial edtech and nonprofit scholarly resources, reflecting a shift toward for-profit models in higher education—provided they deliver measurable value to students and faculty.

University of Leeds closes 60% access gap with Perlego

Universities like the University of Leeds are using Perlego to solve two persistent problems: high textbook prices and limited access to digital versions of required readings. Before the partnership, students at Leeds faced a 60% gap in electronic access to reading-list titles. That gap vanished after integrating Perlego’s library.

Isabel Archer, Access & Acquisitions Manager at the University of Leeds, said students once shared physical copies or turned to illegal websites because they couldn’t afford textbooks. Now, Perlego’s subscription model gives every student legal, immediate access to the same materials.

AI-powered accessibility tools see heavy use at Leeds

Perlego is also helping universities improve accessibility. At Leeds, students have used the Read Aloud text-to-speech feature 40,871 times since the partnership began. They’ve adjusted text sizes 11,391 times and switched to dyslexia-friendly fonts 2,532 times—clear signs of demand for digital textbooks that adapt to individual needs.

The Read Aloud feature covers 95% of Perlego’s catalogue, using AI-generated voices with customizable speeds. Publishers receive royalties for every listen, just as they do for every read.

AI tools prioritize source material over shortcuts

Perlego’s AI tools are built to support research without undermining academic integrity. Its semantic search and retrieval-augmented generation (RAG) tool connect students directly to source material in its licensed catalogue, avoiding fabricated references.

Gauthier Van Malderen, founder and CEO of Perlego, emphasizes the platform’s role in helping users discover and engage with source material—not generate ready-made essays. The approach responds to professors’ concerns about students using generative AI to write papers without learning the underlying content.

Global expansion and future plans

Perlego operates in over 180 countries, with North America accounting for more than 55% of its revenue. The company’s reach extends beyond Western markets, with growing adoption in Europe, Africa, and Southeast Asia—regions where textbook prices can be prohibitive.

Looking ahead, Perlego plans to introduce gamified learning experiences and deepen its collaboration with Ithaka. The partnership could integrate subscription-based books and open-access journals, making it easier for students to find and use the sources they need.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Perlego’s funding and university partnerships show that students and institutions will pay for services that cut costs while improving access—especially when AI tools enhance accessibility without compromising academic standards. Publishers are more open to licensing content when the model guarantees fair royalties and provides detailed usage data.

Key takeaways

• Perlego’s €70 million round reflects demand for digital textbooks that are cheaper and more accessible than print or piracy.
• The University of Leeds eliminated a 60% shortfall in electronic access to reading-list materials, and students used accessibility features tens of thousands of times.
• Perlego’s AI tools prioritize connecting students to source material, not generating essays, addressing professors’ concerns about academic integrity.
• With over 55% of revenue from North America and operations in 180 countries, Perlego’s model scales across diverse markets.

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