The online education platform for K-12 children, specializing in math & science, is now valued at USD 1.5 billion
The online STEM education company's latest round is led by Trustbridge Partners, followed by Tencent and other old shareholders, with Light Source Capital serving as the financial advisor. It is worth mentioning that the firm has completed a total of three rounds of financing within just five months.
In addition, a person close to Spark Education said that the company will be confirming a revenue of around CNY 1.5 billion for 2020.
There have also been rumors circulating about the company applying for an IPO in the US with Goldman Sachs and Credit Suisse as underwriters, although upon being asked the firm declined to comment.
According to data from Tianyancha, Spark Education has completed a total of eight rounds of financing since it was founded in 2017, with total financing of over USD 600 million. Among them, three rounds – D+, E1 and E2 – were completed in 2020.
As lockdowns and home study at home become more common, online education companies are gaining confidence from the capital market. It is worth mentioning that, according to the 'China K12 Online Education Market Research and User Consumption Behavior Report' released by the Chinese Academy of Sciences, the online education industry will exceed CNY 540 billion in 2022; of which K12 online educations' market size will exceed CNY 150 billion, with a 55% penetration rate.