Yuanfudao, a six-year-old startup, has attracted a line of big-name investors. The company announced this week that it has raised USD 300 million in a funding round led by existing investor Tencent, China’s largest social networking and gaming company.
Other participants from the round include Warburg Pincus, Matrix Partners China and IDG Capital . The fresh injection raised Yuanfudao’s valuation from around USD 1 billion at the time it pocketed USD 120 million in 2017 to exceed USD 3 billion.
A report by research firm iResearch shows that China’s online K-12 market will reach 44 billion yuan, or USD 6 billion, by the end of this year and will more than triple to 150 billion yuan by 2022.