Yuanfudao, now the world’s most valuable privately owned ed tech, is seeking fresh funding at a $20 billion valuation, Bloomberg has reported, as capital continues to flow into China’s booming online education sector.
The Tencent Holdings-backed tutoring app is reportedly looking to raise at least $1 billion and has held talks with Boyu Capital and DCP Capital, but the funding round has yet to be finalised and size will depend on investor appetite.
Yuanfudao’s exploration of a fresh funding round comes less than six months after the firm netted $2.2 billion in a raise during which it was valued at $15.5 billion – when it surpassed Indian ed tech behemoth Byju’s as the world’s most valuable ed tech.
Bloomberg’s report noted that Yuanfudao is seeking to boost its valuation ahead of a potential initial public offering in 2022 – but noted that the company said in a statement it has no “formal” plans to float its shares.
Founded in 2012, Yuanfudao offers a range of online courses and has more than 400 million users across China.
Date published: 25 February 2021