This round of financing will skyrocket the online education firm's valuation above USD 13 billion.
According to Chinese media firm 36Kr, online education firm Yuanfudao is about to complete a new round financing worth USD 1.2 billion. It is reported that old shareholders Tencent, Hillhouse and Boyu Capital have participated in this round of financing.
If the news is true, after the completion of this round of financing, Yuanfudao will be valued at more than USD 13 billion, making it the world's highest-valued online education unicorn company, surpassing Byju's.
Yuanfudao received USD 1 billion in a financing round just five-month ago. Hillhouse Capital led the round, followed by Tencent, Boyu Capital and IDG Capital.
According to data provided by Yuanfudao to investors of this round of financing, the firm estimated cash income for this year will reach between CNY 18 billion and CNY 20 billion, which is an increase of more than 30% from the previous round of financing. Among them, the target income of the K12 section is about CNY 15 billion, and the adult education section is about CNY 4 billion.
As of March 2020, in addition to the Beijing headquarters, the company has established teaching and research centers and branches in 11 cities across the country, including Wuhan, Shenyang, Nanjing, Xi'an, Zhengzhou, Chengdu, Jinan, Changsha, Tianjin, and Chongqing with over 15,000 employees.
After nine years of continuous investments from well-known investors, the cumulative number of users of different products of Yuanfudao has exceeded 400 million. Among them, ‘Yuan Question Bank’ has provided 800 million problem practice services for students nationwide, ‘Xiao Yuan Search’ has provided 36 billion homework tutorials, and ‘Little Yuan Corrector’ has over 250 million daily corrections.