Online Education Platform Yuanfudao Raises $1B

Led by Tencent Holdings and private equity firm Hillhouse Capital Group, Yuanfudao raised $1 billion in a new financing round.

What Happened

Yuanfudao, Chinese online education platform, said that with the new $1 billion financing round, the company's valuation would be raised to $7.8 billion as compared to a valuation of $3 billion in its earlier round of financing in 2018, Reuters reported.

financing also included investors - Boyu Capital and IDG Capital. It has 400 million users and 11 teaching and curriculum development centers across China.
Between January and mid-March, the company occupied the first rank in China's education category in-app purchases, mobile app performance tracker App Annie data revealed.

Why It Matters

The online education sector is one of the very few sectors that have attracted a huge investor interest amid the COVID-19 outbreak. Shutting down of schools has compelled students to attend classes through the internet.