Digital learning infrastructure for Latin American classrooms

Gonzalo Aguilar Málaga

gonzalo@check.pe
+51 989066215

check.education
 Problem
Students can’t achieve their learning objectives because the
classroom dynamics are broken

30 students learning Impossible to identify each 1 teacher with limited

at a different pace student’s specific needs amount of time and
with different learning and act upon them resources
gaps
 Problem
Teachers need a tool that allows them to provide a differentiated
learning experience to each student, but the best they get are textbooks

59% of students would 3/4 of educators believe

rather use YouTube to study textbooks will be obsolete
over their own textbooks by 2025

Pearson (2018). Beyond Millennials: The Next Generation of Learners.

 Opportunity
Schools in the Spanish-speaking world buy textbooks on a massive
scale

worth of textbooks are bought

USD 3 Bn every year in Spanish-speaking
countries

Estimate obtained using data from Peru (Ministerio de Economía y Finanzas), Mexico (Cámara Nacional de la Industria Editorial Mexicana), Chile (Fiscalía Nacional Económica), Argentina (Dirección
General de Estadística y Censos), Spain (WMagazín) and Colombia (Cámara Colombiana del Libro). The market size of other spanish speaking countries is an estimate obtained by extrapolating the
market sizes of these countries based on population.
 Opportunity
However, industry incumbents are starting to lose ground in a
massive market creating a large opportunity for disruption

Brazil Spanish Speaking Countries

Annual Sales Annual Growth Annual Sales Annual Growth

(2018) (2017-2018) (2018) (2017-2018)
(1) (1)
USD 188 MM -15% USD 416 MM -7%

(2)
USD 95 MM 56% Disruption Opportunity

(1) Santillana is the main incumbent in the textbook market in LatAm and Spain. It is owned by PRISA group (Spain)
(2) Arco Educação is a Brazilian Learning System for Schools that works with 1400 institutions that is worth USD 3 Bn. It is our best benchmark in terms of product development and
market opportunity.
Building the learning system Spanish-speaking schools need to enhance
their learning experience
 Solution
Adaptive and gamified learning experience that increases students’
motivation to learn

Students learn at their own pace according to Our gamified experience increases
their needs engagement
 Solution
Insightful learning insights and high quality online and offline
resources that enhances teachers’ learning capabilities

Teachers can keep track of class performance We provide online resources and printable
based on their own syllabus materials that enable offline learning
 Solution
Our solution has proven to have significant impact in the learning
of mathematics

Comparative Estimated Effects of Interventions on Maths scores in Standard

Deviations (STD)(1)
0 - 0.5 STD
Is the effect interventions in
education policy achieve(2)

Intervened publics schools

improved from the 28th to
the 45th percentile

Click here to access our White Paper: “Impacto de plataforma Check sobre el
rendimiento en matemática de estudiantes en escuelas públicas”

(1) Sources in descending order: Glewwe, Kremer & Moulin (2007); Khan Academy (2018); Mo et al. (2014); Unal et al. (2010); Check (2019)
(2) Albert Shanker Institute (2014)
 Business Model
Schools switch expenses from textbooks to Check: a more complete
and affordable solution

Future
Current Offering
Offering

Features Check Basic Check Plus Check Pro Traditional Textbook

Yearly price per student per course (USD) (1) $15 $20 $30 $50

Adaptive tailormade platform for students x x x

Teacher access x x x

Parents access x x

Assessment platform x x

Printable learning materials x x

Lesson + unit teaching plans x

Teacher training (micro credentials) x

(1) Includes VAT.

 Business Model
Large tickets per student and a highly sticky solution result in an
attractive LTV per school

Average school LTV with current offering (1 course for secondary, up to plus plan)

USD 20 1 200 USD 4 000 USD 10 500

ticket per student
x available
x students per school
= ARR per school
=
LTV per school(2)
per course course (only secondary) per year(1)

Projected school LTV with future offering (4 courses for primary + secondary, up to pro plan)

USD 30 4 400 USD 48 000 USD 126 000

ticket per student
x available
x students per school
= ARR per school
=
LTV per school(2)
per course courses (k-12) per year(1)

Arco Platform in Brazil operates with a 10x LTV/CAC ratio.

(1) ARCO Platform has an average annual net revenue per school of USD 70,000. Source: ARCO’s 2019 company presentation
(2) Assuming a school only buys our solution for 3 years (conservative) and applying a 15% discount rate. Arco operates with an annual Churn Rate of 5% and discounts ar 11%.
Source: ARCO’s 2019 company presentation
 Business Model
By 2025 we will reach +1200 private schools in 4 countries,
obtaining revenues of over USD 60MM

Countries(1) Paying Schools(2) Average ARR/school ARR

Peru 336 48,000 16,128,000

Mexico 433 48,000 20,784,000

Colombia 254 48,000 12,192,000

Chile 254 48,000 12,192,000

Total 1,277 48,000 61,296,000

(1) Operations in Peru and Mexico are currently launched, Colombia and Chile are launched in 2022.
(2) Projections assume a 108% growth in 2021, 67% in 2022, 60% in 2023 and a 41% in 2024
 Traction
Since our launch in 2019 we have iterated our product constantly
to provide a better learning experience for students

Number of lessons learned per active student

+ 250
teachers used Check in 2019

~ 30 min
avg. weekly time per student for 1
course

+ 15,000 hours
Click here to access our 2019 Impact Report for more detailed review of our spent studying in Check in 2019
traction
 Traction
We have proven to be of great value to two other billion dollar
verticals, with the same product

Public Schools Higher Ed. Institutions

Short term: Private companies pay for local

implementations Preparation courses based on school
expected outcomes that reduce first year
Long term: Government pays for scaled desertion
implementations
 Traction
And have obtained validation from flagship institutions in each
segment we operate in
Private Schools Higher Ed. Institutions Public Schools (1)
(private sponsors)

Peru + Mexico

Mexico

(1) In 2020 Enel will sponsor 2 schools and Poderosa will sponsor 8 schools
 Team
We have built a highly specialized team that will allow to scale our
operation

Gonzalo Aguilar Benjamin Garmendia

CEO Head of Product
Economics - Universidad del Pacífico PPE - Oxford University
APOYO BBVA

Ran a tutoring business from 2015 to 2018 prior to founding Check

(over 4000h taught and USD100k sold)

Ana Cecilia Julca Alonso Guerrero Miguel Bustamante

Educational Resources Operations Technology
Mechanical Engineering - UNI Economics - Universidad del Pacífico Computer Science - UCSP
Enseña Perú Scotiabank Apurata
 Seed round investment deck

Gonzalo Aguilar Málaga

gonzalo@check.pe
+51 989066215

check.education

Disclaimer: This document is confidential. The information in this presentation may not be copied, reproduced, or redistributed without the written permission of Mr. Gonzalo Aguilar Málaga or Mr.
Benjamín Garmendia Mohanna. Statements contained herein are made as of January 2020, unless otherwise noted, and are subject to change without notice. The valuations, forecasts, estimates,
opinions, and projections contained herein involve elements of subjective judgment and analysis.