Chegg Inc

Santa Clara, UNITED STATES (U.S.A.)
Invested through
  • Triodos Multi Impact Fund
  • Triodos Future Generations Fund
  • Triodos Impact Strategy Fund - Defensive
  • Triodos Impact Strategy Fund - Balanced
  • Triodos Impact Strategy Fund - Offensive
  • Triodos Impact Strategy Fund - Dynamic
Asset ClassesListed equity
Impact strategyImpact Equities and Bonds
ISIN codeUS1630921096
Industry groupConsumer Discretionary
Aligned with SDGs
  • No poverty
  • Quality Education
  • Gender Equality

Chegg is a US company providing software-based learning tools for those in high school, university or that have already started their career. Chegg offers subscription services, which include Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, Thinkful, and Mathway. The services provide expert questions and answers, textbook solutions, step-by-step math solvers and so on. In addition to services, Chegg also offers required materials. This enables students to save on the cost of required materials, as they rent or purchase print textbooks and eTextbooks. Most of the print textbook transactions are rentals, although the company also offers both new and used textbooks for sale at a slight markup to our acquisition cost.

Chegg was founded in 2005 as an affordable textbook rental company for college students.

Investment rationale

Chegg creates positive impact through individual empowerment and (to a lesser extent) technological development. On the one hand, Chegg adds to individual empowerment because the company facilitates the access to education in an affordable way, both through its Chegg Services and its Required Materials segments. Chegg helps students reduce their (additional) study costs: First, by providing cheaper access to textbooks and supplementary study materials. Second, by offering affordable yet personalised study and homework aid that they perceive is not sufficiently provided at universities and schools, or if so at an arguably higher price. Both help the students to graduate faster and thus limiting their loan debts.

Chegg adds to technological development because it operates online and is thus easily accessible from almost everywhere. Secondly, the company counts a community of 6,6 million service subscribers (in 2020) who can use Chegg’s services to interact, organize and share their knowledge with each other, which contributes to a rapid distribution of information and knowledge and allows for economies of scale to “do their magic”. This fosters social inclusion and a horizontal, egalitarian access to education that extends beyond just the US.