VIPKID raises US$200 million — biggest investment in students' online education market
VIPKID announced today that it raised US$200 million from investors including Sequoia Capital and Tencent Inc — the biggest investment in the student’s online education industry so far.
The firm will use the money to explore overseas markets to attract 50,000 paid users within three years for online Chinese language learning. It will also offer online English training and classes for Chinese students.
Tencent and VIPKID also said they will cooperate on cloud computing, artificial intelligence and online learning.
The online education of K12, referring to “kindergarten through 12th grade”, is one of hottest sectors in China’s dot-com industry this year. Firms like VIPKID, Liulishuo and Hujiang have recently announced plans to raise funds and expand overseas.
Founded in 2013, VIPKID offers English learning services targeting children aged between 4 and 12. It has more than 200,000 paid users. The firm is expected to generate revenue of 5 billion yuan (US$735 million) in 2017.