Chinese company Yuanfudao is now the world’s most valuable Edtech firm
The investment round led by private equity firm Hillhouse Capital, with support from Tencent, IDG Capital and Boyu Capital, has enabled Chinese EdTech firm Yuanfudao to raise a staggering $2.2 billion to become the world’s most valuable EdTech company. The unicorn was previously only second to India’s Byjus. The investment will provide the funds for Yuanfudao to register more users and further diversify its range of curriculum products.
Founded in 2012, Yuanfudao is an online tutoring platform which allows students to join live sessions to receive homework and revision support. The platform currently has over 400 million registered users and is now valued at $15.5 billion dollars. Yuanfudao employs over 15,000 workers and operates 11 teaching centres across China, with its company headquarters in Beijing.
The Covid-19 pandemic and the surge in EdTech have without a doubt provided the perfect conditions to fuel Yuanfudao’s rapid expansion in China. Additional factors include the long hours that students work each day and the importance of exams and revision in Chinese culture. The importance placed on education is well represented by Yuanfudao becoming an official sponsor of the Beijing Winter Olympics due to be held in 2022.
“ We have always been very optimistic about the online education market. Especially due to the recent epidemic, more and more people have begun to try online education, which has further promoted the acceptance of this industry…” Li Xiaojun, Capital Partner, IDG Capital
Yuanfudao’s main competitor, Zuoyebang also recently initiated a financing round and is also expected to experience continued growth in the mainland.
Key information and statistics about Yuanfudao can be accessed here: https://www.crunchbase.com/organization/yuanfudao
You can learn more about EdTech here: https://global-edtech.com/edtech-definitions-products-and-trends/