Chinese online education firm Yuanfudao announced the completion of a $1.2 billion Series G2 which valued the company at $15.5 billion, according to a statement sent to TechNode.
Details: DST Global led the round, a second batch of Yuanfudao’s Series G, with participation from CITICPE, GIC, Temasek, TBP, DCP, Ocean Link, Greenwoods, and Danhe Capital.
- The statement also made official a $1 billion Series G1 received in April this year, and confirmed a report by local media on Wednesday about a second batch. Together, the two rounds boost the total raised in the Series G to $2.2 billion.
- The G2 financing round increased Yuanfudao’s valuation to $15.5 billion, almost doubling its $7.8 billion valuation from six months ago.
- The Beijing-based firm plans to use the cash for educational technology innovation, to accelerate new curriculum product development, and expand its online education service system, according to the statement.
- The company said that two of its core businesses—live tutoring platform Yuanfudao and Zebra AI Class which targets pre-school students—have amassed a combined 3.7 million users.
Context: In China’s crowded online education market, Yuanfudao is competing with rivals like Zuoyebang and Vipkid.
- Archrival Zuoyebang, also focused on K-12 sector, is reportedly closing a $700 million to $800 million round, according to a Chinese media report. Similarly, the round comes on the heels of a hefty $750 million Series E received in June this year.
- Investors are rushing to the online education sector, which has seen a boost as a result of the pandemic.