Zuoyebang, a Beijing-headquartered startup that runs a web-based studying app, stated on Monday it has raised $750 million in a brand new financing spherical as traders reveal their continued belief in — and deal with — Asia’s booming edtech market.
U.S. funding agency Tiger Global and Hong Kong-based personal fairness agency FountainVest Partners led the six-year-old startup’s Series E financing spherical. Existing traders together with SoftBank’s Vision Fund, Sequoia Capital China, Xiang He Capital, Qatar Investment Authority additionally participated within the spherical, which brings the startup’s to-date increase to $1.33 billion.
As we now have beforehand famous in our protection, Zuoyebang’s app helps college students — starting from kindergarten to 12th-grade — clear up issues and perceive advanced ideas.
The app, which provides on-line programs and runs reside classes, additionally permits college students to take an image of an issue, add it to the app, and get its answer. The startup claims it makes use of synthetic intelligence to establish the query and its reply.
Zuoyebang has amassed 170 million month-to-month lively customers, about 50 million of whom use the service every day, the startup stated in a submit (in Chinese). More than 12 million of those customers are paid subscribers, it stated.
The announcement immediately additional illustrates the alternatives traders are seeing within the on-line training sector in Asia. Last week, Indian edtech large Byju’s introduced it had obtained contemporary funds from Mary Meeker’s fund, Bond.
SoftBank counts Zuoyebang amongst its 88 portfolio startups which have demonstrated progress in latest quarters. Zuoyebang was based by Baidu in 2015. A 12 months later the Chinese search large spun off Zuoyebang into an impartial startup.
Zuoyebang competes with a handful of startups in China, together with Yuanfudao, which provides an analogous service. In March, Yuanfudao stated it had secured $1 billion in a financing spherical led by Tencent and Hillhouse Capital. The startup was valued at $7.eight billion on the time. Reuters reported earlier this month that Zuoyebang may very well be valued at $6.5 billion within the new financing spherical.
According to analysis agency iResearch, the net training market in China may very well be value $81 billion in two years.