Chinese Online Education Firm Yuanfudao Raises $1 Billion in New Round Led by Tencent and Hillhouse Capital


Chinese Online Education Firm Yuanfudao Raises $1 Billion in New Round Led by Tencent and Hillhouse Capital

China’s online education platform Yuanfudao has raised $1 billion in a new funding round led by its existing investor Tencent Holdings and private equity firm Hillhouse Capital Group.

The Series G round also saw participation from Hong Kong-based private equity firm Boyu Capital and IDG Capital. According to a company statement, the funding has raised its valuation to $7.8 billion.

Founded in 2012, Yuanfudao focuses on K-12 learning offering a suite of services, including artificial intelligence-enabled virtual classes, live tutoring, a database of exam problems and a popular homework help app. The homework support app scans homework problems and solves them instantly with the snap of a camera. The startup also operates a research institute for artificial intelligence, which could train its homework app to be smarter.

Yuanfudao has over 400 million users on its platform, and as of March, the startup has 11 teaching and curriculum development centres across the country. It ranked first in China in-app purchases in the education category between January and mid-March, according to mobile app performance tracker App Annie.

Meanwhile, the latest investment comes as students across the world are turning to online learning with schools shutting down amid the deadly coronavirus outbreak, which has developed into a full-blown global pandemic. Yuanfudao’s focus on online learning puts it in one of the few sectors that have seen a surge in investor interest as the coronavirus and school closures force students across China to attend classes or learn via the internet.

Yuanfudao was valued at $3 billion in the previous round of financing in 2018 when the company raised $300 million led by its existing investor China’s internet giant Tencent Holdings. Prior to that, the company raised $120 million in 2017, which puts it among the list of unicorns valued at more than $1 billion in the country.

The Beijing-based online education company counts Warburg Pincus, Matrix Partners China, New Horizon Capital, CMC Capital Group and Tencent Holdings among its early investors.

Img Src

About the Author
Author: Stephen Soulunii
Stephen Soulunii No more a student, but love to learn. Not a teacher, but care about how students are taught. Not an educator, but want everyone to be educated. Not a social worker, but desire to see change. Not a reformer, but always want to see a better world. The author believes that only sound education can bring a better future, better world and technology can help achieve a lot in this field.

Like what we do?

The Latest EdTech News To Your Inbox

Follow us:

   

   

 

About ETR Community

EdTechReview (ETR) is a community of and for everyone involved in education technology to connect and collaborate both online and offline to discover, learn, utilize and share about the best ways technology can improve learning, teaching, and leading in the 21st century.

EdTechReview spreads awareness on education technology and its role in 21st century education through best research and practices of using technology in education, and by facilitating events, training, professional development, and consultation in its adoption and implementation.

 

-> Read More

Join The Community

Subscribe and Join the 80,000+ members who trust us...

Testimonials
I find every news, reviews very informative and interesting. This site is indeed a great site for both teachers and learners. Thanks to EdTech for creating such an enriching site on education. Hats off!!
- Regin Brown, Educationist and Blogger, United Kingdom


My group likes this site because it's so up-to-date and has tons of relevant articles.
- Angela Giuliano, Teacher, New Mexico


Your write ups and articles ignites the minds making them receptive to the whole new wealth of EdTech.
- Jagat Rana, Parent, India


EdTechReview has some great resources for teachers who need to get some ideas about technology in the classroom.
- Loretta Wideman,Teacher, East Africa


EdTechReview keeps educators up to date with trending tech savvy terms relative to the discipline.
- Dr. Ingrid Rizzolo,Education Professional, Curriculum and Instruction Designer, New York City Area

-> Read More

Go to Our Client List

Adobe Avaya Bettasia Bonio Campus Management CK12 CKS Evernote IBM Intel IQPC Kidzania McGraw Hill Moodle Moot USC Rossier CMR University The British School Canadian International School Pathways Ridge Valley

Subscribe to our Newsletters...