<article><a href="https://www.dealstreetasia.com/tag/mekong-capital/">Mekong Capital</a> has made the sixth investment from its Mekong Enterprise Fund III, funneling $4.9 million for a minority stake in education firm YOLA Joint Stock Company.</article>

<a href="https://www.dealstreetasia.com/tag/mekong-capital/">Mekong Capital</a> has made the sixth investment from its Mekong Enterprise Fund III, funneling $4.9 million for a minority stake in education firm YOLA Joint Stock Company.
The Vietnam-focused private equity firm is the first institutional investor in YOLA.
The investment will help the company enhance its products and services, build its team of professional managers and teachers, and finance the launch of new campuses.
With the investment from Mekong Capital, YOLA has already opened four new training centres in Ho Chi Minh City, which bring the total number of campuses to 10 nationwide. The current campuses are based in Hanoi and Ho Chi Minh City, but the company also plans to open more locations in tier-two cities across Vietnam.
Starting out in 2009 as an online English education startup, YOLA has evolved to an integrated educational services provider with a wide range test preparation courses (SAT, TOEFL, IELTS, GMAT, GRE), English language, soft-skill training, after-school tutoring, summer camps, and development of educational content.
&#8220;We were a bit early in 2009 with the 100 per cent online education model when Internet infrastructure and student behaviors were not ready. The decision to pivot to the current model has allowed us to build a deep understanding of how Vietnamese students learn English, how to involve parents in the planning and development of the child, while strengthening our capabilities in curriculum development and establishing our quality education reputation,&#8221; said Tu Ngo, co-founder and vice president of strategy and products at YOLA.
“We are excited to have entered into a strategic partnership with Mekong Capital, as they have strong experience in adding value to private companies in Vietnam and also the educational sector,” said Khoa Pham, chairman and CEO of YOLA.
YOLA is the second education portfolio company of Mekong Capital, which exited K-12 Vietnam Australia International School to global alternative investment firm <a href="https://www.dealstreetasia.com/tag/tpg/">TPG</a>.
“YOLA as an organisation is led by a team of exceptional founders, who have successfully built a platform to realise their long-term objectives,” commented Sjoerd Zwinkels, Mekong Capital’s deal leader for this investment.
YOLA has successfully trained over 30,000 students, with over 10,000 currently studying abroad, including those admitted to top universities such as Harvard, Stanford, Yale and Cornell University.
Vietnam is among the world’s fastest growing economy, hence spending for education is increasing rapidly. Last year, it was estimated that the cost for studying abroad reached $3 billion. A World Bank report showed that nearly 30 per cent of Vietnamese households send their children to private courses.
Private equity players have tapped into this set-to-grow market, having backed several other ventures in the past.
It was reported in November 2016 that Hong Kong-based HPEF Capital was looking to exit ILA Vietnam for $150 million. Prior to that, the <a href="https://www.dealstreetasia.com/tag/international-finance-corporation/">International Finance Corporation</a> announced a $10 million funding for US Society International English JSC.
Also read:
<a href="https://www.dealstreetasia.com/stories/exclusive-ifc-making-10m-investment-in-vietnam-based-english-training-centre-55811/">Exclusive: IFC invests $10m in Vietnam-based English training centre VUS</a>
<a href="https://www.dealstreetasia.com/stories/former-hsbc-pe-arm-considers-150m-sale-of-ila-vietnam-59517/">HPEF Capital mulls sale of ILA Vietnam for $150m</a>
<a href="https://www.dealstreetasia.com/stories/tpg-to-take-majority-stake-in-vietnam-australia-school-mekong-capital-maj-exit-68835/">TPG to take majority stake in Vietnam Australia School; Mekong Capital, MAJ exit</a>

YOLA is the second education portfolio company of Mekong Capital, which exited K-12 Vietnam Australia International School to global alternative investment firm TPG.

Vietnam: Mekong makes second education deal, puts $4.9m in YOLA

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Vietnam: Mekong makes second education deal, puts $4.9m in YOLA

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