Yuanfudao Nabs USD 300 Million From YF Capital

Consumer Discretionary Author: Qasim Khan Editor: luke Sheehan Dec 24, 2020 03:49 PM (GMT+8)

After raising a total of USD 3.5 billion in 2020 alone, what is next for the online K12 education firm?

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According to the Tianyancha App, on December 24, one of china's leading EdTech companies, Yuanfudao, raised USD 300 million backed by Jack Ma's YF Capital. It is worth noting that this is Yuanfudao's third round in 2020. 

The K12-focused company completed a USD 1 billion G round of financing led by Hillhouse Capital in March this year. Later, in October, it completed a staggering USD 2.2 billion financing, led by Tencent and DST – a round which was officially launched in early August but was finally divided into two rounds.  

To date, Yuanfudao has raised a total of about USD 4 billion over nine rounds of funding, valuing the company at approximately USD 17 billion. With large amounts raised the firm has been on a spree of aggressive advertisement during the past few months. Although the company has not officially spoken about it we can take that as an indication of an IPO in 2021. 

It is worth noting that since the beginning of this year, the online education track has been receiving financing quite frequently. According to data provided by the Tianyancha App, in the first half of this year, more than CNY 10 billion of financing poured into the education track, of which online education was particularly favored by the capital market. Among the top ten companies in terms of financing amount, nine are online education institutions.