Chinese Online Education Company "Huohua" Raises USD 40 Million
LUO Jian the CEO of Huohua announces USD 40 million series C round of funding
On March 23, 2019, at the anniversary of the company “Huohua” LOU Jian announced the completion of the latest round of Series C financing of USD 40 million which was led by Longhu Capital and Northern Light Venture Capital, followed by Sequoia Capital China Fund, IDG Capital, Lightspeed China, Hike Capital, Jinshajiang Venture Capital, other old shareholders and investors. It is reported that the new round of financing will be used in teaching research, teaching development and product content upgrades.
LUO Jian revealed that 70% of the new students were introduced by the parents, and the renewal rate reached 85%. The users are spread throughout the country. According to Luo Jian, since the launch of Huohua Siwei products in March last year, more than 20,000 formal students have been enrolled, covering all provinces in the country.
At the same time, the size of the company has grown, with more than 1,000 employees, teaching and research team consisting of 70 members, 400 product development team members, 500 teachers, and 200 head teachers.
"Children's mathematical thinking training is a market with great potential and Huohua will take further steps to tap the trend," LUO said. He further added, "The change (in how Chinese parents perceive mathematics) has projected a great market that in China is now still at a very early age."
Huohua Siwei is an online children's thinking training platform in China. It offers a one-to-many online interactive live small class, and strong interactive game links to develop students' core ability of thinking, concentration and other core skills. It is focused on the young mathematics thinking training, which is divided into three modules: spatial thinking and graphics, computing power, and logical reasoning.
LUO Jian, founder, and CEO of Huohua, said: "We always adhere “child-centered” educational concept. Only by focusing on our own teaching and research, teacher reserve, and technological innovation can we give children a high-quality education." He believes that disciplined quality education should not only satisfy the ability to cultivate but also transfer knowledge. The curriculum Huohua thinking meets the rigid demand of “disciplinary education foundation” while taking into account the parents' demand for quality education of “thinking ability”.
Previously, the company had completed several rounds of financing, according to public sources. In May 2018, Huohua announced the completion of USD 15 million in financing which was led by Lightspeed China Capital, IDG Capital, Hike Capital, and GSR Ventures. Just a month later Huohua attracted another investment of USD 20 million and this time the leading investor was Sequoia Capital China followed by Northern light Capital Ventures, Lightspeed China Capital, IDG Capital, Hike Capital, and GSR Venture.
Quora reports, Online education is one of the fastest expanding industries in China. In 2015, the number of Chinese online education users equaled 110 million with a market value of CNY114 billion. By 2018, the number of online learners grew 63% to 179 million while the market value more than doubled to CNY300 billion. This trend is expected to continue into the future with UBS estimating that the market will increase to CNY714 billion by 2025.