Yoto, creator of the Yoto Player and Yoto Mini for children, has secured an additional $22 million in funding to support its global growth strategy.
The latest investment was led by the Chan Zuckerberg Initiative, with participation from DNS Capital, as well as Yoto’s existing shareholders, Acton Capital and Burda Principal Investments, according to a press release last week (June 21).
The Telegraph reports, citing a Yoto spokesman, that Mark Zuckerberg and his wife Priscilla Chan’s philanthropic investment fund injected around $11 million of the fresh funding that values Yoto at $182 million.
Chan Zuckerberg Ventures quietly invested in Yoto late last year, according to the Telegraph, taking a roughly 10% stake. Vivian Wu, the fund’s managing partner, has reportedly joined Yoto’s board.
Ben Drury and Filip Denker founded Yoto in 2017 as a device that lets kids access music and audio without being exposed to advertisements, unsuitable content or racking up screen time.
The Yoto Player is a small speaker that uses physical cards called Yoto Cards, each containing specific content like a storybook, an album, or a set of songs. By inserting a card into the Yoto Player, the device plays the corresponding audio content.
The funding closed in October 2023 after a successful year for Yoto. The company launched the 3rd generation Yoto Player in summer 2023 and has since achieved rapid growth.
Yoto says the latest investment will support its continued expansion into new global markets, continuous product improvements, and the extension of its content library and Yoto Originals publishing arm.
Vivian Wu, Managing Partner of Ventures at Chan Zuckerberg Initiative, said: “We’re excited to support the team at Yoto and their innovative products to help young children develop their curiosity, creativity, and listening skills.”
“This investment will help increase access to these beloved products to more schools, allow the team to conduct more research, and expand their educational content library.”
Vivian Wu, Chan Zuckerberg Initiative
“This investment will help increase access to these beloved products to more schools, allow the team to conduct more research, and expand their educational content library.”
Since the second-generation Yoto Player’s launch in 2020 via Kickstarter, the app has gained popularity in the UK, France, and North America. The company boasts partnerships and content deals with major names like Disney, Penguin Random House, Universal Music Group, and Warner Music Group.
“This new investment will not only help further the expansion of our best-in-class team that is at the forefront of driving growth across markets and products, but also provide the resources to develop our trusted ecosystem that brings value to so many families around the globe.”
Ben Drury, Yoto
Yoto’s growing library offers over 1,200 audio experiences suitable for children from birth to 12 years old. This includes classics like C.S. Lewis’ The Chronicles of Narnia and Roald Dahl stories, alongside content from modern authors and characters like Peppa Pig, PAW Patrol, Daniel Tiger and Sesame Street.
Yoto has recently launched classic music albums in Yoto card format, including Queen: Greatest Hits Volume 1 and The Beatles Red and Blue albums.
Ben Drury, CEO and co-founder of Yoto, said: “At Yoto, we have a vibrant culture of innovation. This new investment will not only help further the expansion of our best-in-class team that is at the forefront of driving growth across markets and products, but also provide the resources to develop our trusted ecosystem that brings value to so many families around the globe.”
“While we focus on adapting, evolving and expanding our offerings, our commitment to fostering independence and inspiration for children through listening, learning and play remains at the heart of all we do and is core to continuing our trajectory of sustainable growth.”
Music Business Worldwide
