Online education start-up Yuanfudao raises US$1bn as sector heats up on coronavirus impact
- The Series G funding round will push the Beijing-based start-up’s valuation to US$7.8 billion, according to a company statement
China’s online education platform Yuanfudao has secured US$1 billion in a new funding round led by Hillhouse Capital and its previous investor Tencent Holdings, as the coronavirus outbreak drives up demand for e-learning with many children still at home.
The Series G funding round will push the Beijing-based start-up’s valuation to US$7.8 billion, according to a company statement on Tuesday. With a focus on K-12 learning, Yuanfudao’s products include artificial intelligence-enabled virtual classes, live tutoring and apps for arithmetic questions and other homework support.
Hong Kong-based private equity firm Boyu Capital and IDG Capital are among other backers that took part in the investment.
Founded in 2012, Yuanfudao counts Warburg Pincus, Matrix China, New Horizon Capital, CMC Capital Group and internet giant Tencent among its early investors. The company said it has over 400 million users on its platforms. As of March, the company also had 11 teaching and curriculum development centres across the country.
The investment comes as students across the world are turning to online courses with schools closing their doors amid the Covid-19 outbreak, which has developed into a full-blown pandemic.