China online education startup gets Alibaba in $1.6 billion funding round

The online tutoring startup backed by Tencent Holdings Ltd and Hillhouse Capital said in October it’s hit a $15.5 billion valuation after closing two funding rounds worth $2.2 billion.

By:BLOOMBERG
| Updated on: Aug 21 2022, 13:46 IST
China’s online learning market is expected to reach 315 billion yuan ($48 billion) in 2020, almost tripled from five years ago, according to global market data tracker Statista.
China’s online learning market is expected to reach 315 billion yuan ($48 billion) in 2020, almost tripled from five years ago, according to global market data tracker Statista. (REUTERS)

Alibaba Group Holding Ltd. and Tiger Global Management LLC led a $1.6 billion investment in Chinese online education startup Zuoyebang, underscoring how the Covid-19 pandemic has turned distance learning into a red-hot business.

Existing backers Softbank Vision Fund, Sequoia Capital China and FountainVest Partners also participated in the funding, Zuoyebang said in a statement. The latest round comes months after Zuoyebang, which also counts Goldman Sachs and GGV Capital among its investors, raised $750 million in June.

You may be interested in

MobilesTablets Laptops
7% OFF
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
28% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

Investors have poured into the sector this year as more students embraced e-learning, a trend that has been accelerated by school closures amid the pandemic. China's online learning market is expected to reach 315 billion yuan ($48 billion) in 2020, almost tripled from five years ago, according to global market data tracker Statista.

Also read
Looking for a smartphone? To check mobile finder click here.

Loosely translated as “homework assistant,” Zuoyebang is a spinoff of China's search engine titan Baidu Inc. Founded by former Baidu executive Hou Jianbin, the five-year-old startup offers live-steaming classes as well as other remote study services to more than 170 million monthly active users across the country. On any given day, at least 50 million students -- the equivalent of the entire population of Spain -- are using its platform, the company has claimed.

The fresh funding will help Zuoyebang level the playing field with major rival Yuanfudao. The online tutoring startup backed by Tencent Holdings Ltd and Hillhouse Capital said in October it's hit a $15.5 billion valuation after closing two funding rounds worth $2.2 billion.

Nationwide, Chinese education startups have attracted at least 47.6 billion yuan in investment in the year till Dec. 18, according to market research firm Zero2IPO Group.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 28 Dec, 18:46 IST
Tags:
NEXT ARTICLE BEGINS