Academic examinations are an important issue in China because they determine the type of universities, secondary schools, primary schools to which students are enrolled, and the future that awaits them.
Parents therefore want to invest generously to help their children to progress in school. One of the startups that exploit this need is Yuanfudao, A six-year-old start-up that attracted a group of big investors. The company announced this week it had raised $ 300 million in a financing round led by the current investor Tencent, China's largest social relations and games company.
Other participants of the tour include Warburg Pincus, China Matrix Partners IDG Capital . Fresh injection raised Yuanfudao evaluation of About $ 1 billion at a time when $ 120 million was injected In 2017 to exceed $ 3 billion.
China's test-oriented culture has raised a $ 1 billion teaching market. With the proliferation of mobile Internet at affordable prices, many of these efforts are being implemented online. Report from research firm IResearch showed that the Chinese K-12 online market will reach 44 billion yuan, or 6 billion dollars, by the end of this year, and will more than triple to 150 billion yuan by 2022.
Yuanfudao, which means "ape tutor" in Chinese, runs a range of services including direct training courses, a database of exam problems and application help in homework. The latter examines the problems of homework and resolves them immediately with camera capture. An emerging company runs an artificial intelligence research institute, which can train its homework to be smarter.
Yuanfudao claims to serve more than 200 million users, including students and their parents who use startup applications to check the progress of their children's learning.
Yuanfudao told TechCrunch that he derives most of his revenue from selling live courses. It plans to use the proceeds from the last round to finance research investments and artificial intelligence development as well as to improve the experience of application users.
The company is emerging in a hot race to fight for Chinese students and parents. Other companies that have auxiliary services in similar homework include Zuoyebang, which is Supported by Chinese giant Baidu search, Department of Coatue, Sequoia Capital China and Goldman Sachs. Another one is Yiqizuoye, which is important Singapore sovereign fund Temasek As an investor. A wave of Chinese companies that have begun to focus on adult education has also entered the K-12 battles, including New Oriental and 51Talk, both listed on the New York Stock Exchange.