China’s TAL Education secures $500m investment from unnamed investor

A classroom in China. Photo: Pixabay

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.

Also Read:

China’s Mingsheng, CICC Capital to set up $1.5b M&A educational fund

China: Early education platform Zhang Tong Jia Yuan bags $100m Series D

New Oriental Education leads $13m in Chinese provider of kids content

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.