<article>Beijing-based online tutoring firm Yuanfudao on Tuesday announced raising $300 million in its latest round of funding at a valuation of over $3 billion.</article>

Beijing-based online tutoring firm Yuanfudao on Tuesday announced raising $300 million in its latest round of funding at a valuation of over $3 billion.
The funding round was led by Tencent Holdings and joined by Warburg Pincus, Matrix Partners China and IDG Capital.
Founded in 2012, Yuanfudao claims to be the largest online live course platform catering to primary and secondary school students in China. It offers one-on-one live tutoring sessions, a database of exam problems and a homework help app.
The startup became the country&#8217;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 Information had in November <a href="https://www.theinformation.com/articles/tencent-backed-startups-valuation-tops-2-8-billion-in-chinas-online-education-war">reported</a> that Tencent was in talks to invest $250 million in the startup at a $2.8-billion valuation. The report said that the Chinese online education startup had generated about RMB 700 million ($101.5 million) in revenue last year.
Yuanfudao said it plans to use the fresh funding for further technology research and development.
<h3>It&#8217;s pouring investments in China&#8217;s education sector</h3>
China&#8217;s education sector has seen a flurry of investments from companies eager to cash in on a booming market. According to a January report by iResearch, China&#8217;s market for online tutoring is projected to grow to RMB 543 billion ($79 billion) by 2022.
In June, Beijing-based educational technology firm VIPKid, which connects Chinese students with English-speaking tutors in the US and Canada, <a href="https://www.dealstreetasia.com/stories/china-vipkid-500mn-100272/">raised $500 million in a Series D+ round</a>. The startup, which is currently valued at more than $3 billion, claimed it was the largest round of financing in the sector globally.
Bloomberg had in October reported that Zuoyebang, which offers similar online education services, was <a href="https://www.dealstreetasia.com/stories/softbank-chinese-education-startup-107817/">in talks with the SoftBank Vision Fund to raise $500 million</a>.
In March, K-12 education platform Sunny Education, also known as 17ZUOYE, announced that it had raised $250 million in a Series E round led by Singapore&#8217;s Temasek. The round was joined by new investor CITIC Private Equity Funds Management (CITICPE) and existing shareholders such as Shunwei Capital.
In January, China’s Zhangmen, a K-12 personalized online tutoring company, completed its $120-million Series D round of financing from an affiliate of private equity firm Warburg Pincus and Genesis Capital.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/softbank-chinese-education-startup-107817/">SoftBank Vision Fund said to eye investment in Chinese education startup</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/china-vipkid-500mn-100272/">China: Tencent-backed education startup VIPKID bags $500m Series D+</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/temasek-china-edtech-17zuoye-94652/">Temasek leads $250m Series E round in Chinese edtech startup 17ZUOYE</a>

Yuanfudao is valued at over $3 billion after the funding, a significant jump from its $1-billion valuation last year.

Tencent leads $300m round for Chinese online tutoring firm Yuanfudao

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Tencent leads $300m round for Chinese online tutoring firm Yuanfudao

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