Chinese online tutoring start-up Yuanfudao raises US$2.2b

One round of financing was led by Chinese social media and gaming giant Tencent.

BEIJING: Beijing-based education technology startup Yuanfudao said on Thursday that it has secured $2.2 billion from major Chinese and international investors in two recent rounds of financing that it said lifts the company's valuation to $15.5 billion.

One round of financing was led by Chinese social media and gaming giant Tencent, with participation from Hillhouse Capital, Boyu Capital and IDG Capital, Yuanfudao said in a statement. Yuanfudao raised $1.2 billion in the round, Reuters has reported.

A second round was led by DST Global, and other investors include CITICPE and Singapore investors GIC and Temasek.

The new funds mean the startup, which operates live tutoring platforms and online homework services, has doubled its valuation within a year as investors increase bets on a sector that saw a surge of interest after the coronavirus pandemic triggered a migration to online classes. The company said it currently has 400 million users in China.

In March, it raised $1 billion, valuing it at $7.8 billion.

Yuanfudao's main rival Zuoyebang has also started a new fundraising drive at a valuation of $10 billion, Reuters reported last month. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

education , startup , Yuanfudao , Tencent


Did you find this article insightful?


100% readers found this article insightful

Next In Business News

KLCI takes pause as investors digest recent gains
AmInvest Research maintains Buy on Hong Leong Bank, FV RM19.30
Maybank’s 9M core net profit within CGS-CIMB Research’s forecast
RHB Research keeps Buy call on Public Bank, TP RM21.60
Ringgit opens higher on continued dollar weakness
China's factory activity expands at fastest pace in over 3 yrs
Bursa ekes out slight gains, China data to boost sentiment
Foreign selling on Bursa at RM23.48bil since January
Padini poised for further recovery, says Kenanga
Trading ideas: Public Bank, Padini, Axiata, Hong Leong Bank, Greatech

Stories You'll Enjoy