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Briefing: Online tutor Yuanfudao raises $300 million in Tencent-led funding round
猿辅导完成新一轮3亿美元融资 腾讯领投-Sina Tech
What happened: Chinese online tutoring company Yuanfudao announced that it has received $300 million in a funding round led by Tencent, with the participation of existing investors Warburg Pincus, Matrix China Partners, and IDG Capital. The financing now values the company at over $3 billion. The proceeds will be used to improve its online learning experience by leveraging AI and other new technologies, according to the company.
Why it’s important: Online education services, especially those focused on K-12 education, have become widely adopted in China. Founded in 2012, Yuanfudao now claims to have over 200 million users. Given the market boom, there’s plenty of competition in China’s K-12 online education space, as Chinese internet giants begin to stack their chips in the sector. The Beijing-based Yuanfudao is competing with rivals like Zuoyebang, Entstudy, and Songshu AI.