Beijing-based education services provider Wanxue Education has raised $100 million in a Series D round led by Asian private equity firm ADV Partners, raising its stakes in serving the exponentially growing education demand in China.
Chinese investment bank Index Capital, which focuses on providing professional and efficient private equity financing, mergers and acquisitions, debt financing, and investment management services for growing enterprises, served as the exclusive financial advisor of the deal. The company said the new proceeds will be used to further develop new products and expand the coverage of products across the country.
Incorporated in 2006, Wanxue Education provides advanced non-academic education for those with degrees higher than a Bachelor’s. It provides services like test preparation and admission consulting, covering China Graduate Admission Test (CGAT), College English Test Band 4/6 (CET-4/6), and National Computer Rank Examination (NCRE), among others.
Wanxue Education also provides civil servant exams tutorship for those with at least undergraduate degrees. The company claims to have so far served over 5 million students, delivering services through nearly 1,000 advanced education institutions in China.
Issuing a statement on the latest development, Zhang Rui, Founder and President of Wanxue Education, said the company will continue to help young people “significantly improve academic and professional competitiveness” by leveraging advanced education technologies and intelligent study systems.
Meanwhile, the new investment is said to have come as the number of candidates for China’s national postgraduate entrance examination has reached a record high of 2.9 million in 2019, up 21 percent compared to the year before, according to state-owned People.com.
It is also worth taking a look at the past funding of the company. Wanxue has raised millions of dollars since its founding in 2006. In 2014, the company raised undisclosed millions of US dollars in its Series C round from Chinese tech giant Baidu, private equity firm HAO Capital, and venture capital firm DCM. In 2011, it received $20 million in a Series B round backed by DCM, Sequoia Capital China, Legend Capital, and F&H Fund Management. The company also raised $20 million in its Series A round in 2008.