NYSE-listed TAL Education Group, a Beijing-based K-12 after-school tutoring services provider in China, has received an investment of $500 million in exchange for newly issued Class A common shares of the company.
The company did not disclose the identity of the investor in its official announcement but indicated that it was an existing backer who, with the new deal, has raised its holding in the company to approximately 7 per cent.
TAL, which stands for Tomorrow Advancing Life, offers tutoring services to students from pre-school to the twelfth grade through three flexible class formats: small classes, personalized premium services, and online courses.
While continuing to be one of the major players in China’s education space, TAL has also started making investments in its industry peers.
Among the companies TAL has invested in include US-based adaptive learning technology company Knewton and Beijing-based Empower Education Technology (EEO), operator of K-12 online live streaming education platform ClassIn.
Last year, it participated in the $225-million Series D funding round for Chinese online tutoring service DaDa in a round led by private equity firm Warburg Pincus.
In China, TAL saw one of its competitors Yuanfudao become the country’s first online K-12 tutoring service provider to achieve a $1-billion valuation last year when it raised $120 million from Warburg Pincus and Tencent.
The Beijing-based online tutoring firm last month announced raising $300 million in its latest round of funding led by Tencent Holdings and joined by Warburg Pincus, Matrix Partners China and IDG Capital.