Yoto, the company behind the Yoto Player and Yoto Mini for children, has raised an additional $22 million to support its global growth. This funding round was led by the Chan Zuckerberg Initiative, with participation from DNS Capital and existing investors Acton Capital and Burda Principal Investments, as per a press release on June 21.
According to The Telegraph, a Yoto spokesperson mentioned that the Chan Zuckerberg Initiative, Mark Zuckerberg and Priscilla Chan’s philanthropic fund, contributed around $11 million of the new funding, valuing Yoto at $182 million.
Chan Zuckerberg Ventures had quietly invested in Yoto late last year, acquiring about a 10% stake. Vivian Wu, the managing partner of the fund, has joined Yoto’s board.
Founded in 2017 by Ben Drury and Filip Denker, Yoto offers a device that allows children to access music and audio without exposure to ads, inappropriate content, or excessive screen time. The Yoto Player uses physical cards called Yoto Cards, which contain specific content like storybooks, albums, or song sets. Inserting a card into the Yoto Player plays the corresponding audio.
The funding round closed in October 2023, following a successful year for Yoto, which launched the third-generation Yoto Player in the summer of 2023 and experienced rapid growth.
Yoto plans to use the latest investment to continue expanding into new global markets, improve products, and extend its content library and Yoto Originals publishing arm. Vivian Wu expressed excitement about supporting Yoto’s innovative products, which help children develop curiosity, creativity, and listening skills. She emphasized that the investment would increase product access to more schools, support research, and expand the educational content library.
Since the launch of the second-generation Yoto Player in 2020 via Kickstarter, the app has gained popularity in the UK, France, and North America. Yoto has partnerships and content deals with major names like Disney, Penguin Random House, Universal Music Group, and Warner Music Group.
Yoto’s growing library includes over 1,200 audio experiences for children from birth to 12 years old, featuring classics like C.S. Lewis’ The Chronicles of Narnia and Roald Dahl stories, as well as content from modern authors and characters like Peppa Pig, PAW Patrol, Daniel Tiger, and Sesame Street. Recently, Yoto also released 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, stated that the new investment would help expand their team and develop their ecosystem, providing value to families globally. He emphasized their commitment to fostering children’s independence and inspiration through listening, learning, and play, which remains central to Yoto’s sustainable growth strategy.
