(Feb 24): Tencent Holdings Ltd-backed Yuanfudao is seeking fresh funding at a valuation of more than US$20 billion, people familiar with the matter said, as the cash-burning battle in China’s online education arena shows no sign of abating.
The Beijing-based tutoring app is planning to raise at least US$1 billion and has held discussions with investors including Boyu Capital and DCP Capital, according to people familiar with the matter. The funding round has yet to be finalized and the size will depend on investor interest, the people said, asking not to be identified as the information isn’t public.
The latest fundraising comes less than six months after a US$2.2 billion round that valued the startup at US$15.5 billion, the most among edtech companies globally, Yuanfudao said at the time. The tutoring upstart is competing with top teaching providers like TAL Education Group as well as the education wings of internet giants like ByteDance Ltd for a bigger share of China’s pri