Yuanfudao said on Wednesday that it had raised $120 million from investors, including private equity firm Warburg Pincus and Tencent, a deal which values the Chinese online tutor at over $1 billion.
The arrival of China’s first e-learning unicorn comes after the Chinese government abolished its one-child policy’ in 2015 and amid advances in online streaming technology.
After several years of sector consolidation due to high-startup costs, stock analysts see industry leaders grabbing market share, supported by stronger brands and standardised products geared towards helping tiger moms push their children through China’s college entrance exam.
“We are strong believers in the wider...
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