Mekong commits $4.9m to Vietnam education provider
Mekong Capital has invested $4.9 million for a minority stake in Yola, a Vietnam-based education services provider specializing in overseas test preparation and English language training.
This is the sixth investment announced for the private equity firm’s fourth vehicle – Mekong Enterprise Fund III – which closed at $112 million in May 2016. It also follows a successful exit from another education asset, Vietnam Australia International School. Mekong and MAJ Invest both agreed to sell their stakes when TPG Capital took a controlling position in the business.
Yola was founded in 2009 by three young Vietnamese graduates from US universities. Starting out as an online English learning platform that connected students and teachers, the company has since established a network of campuses in Ho Chi Minh City and Hanoi. In addition to English language training, it is known for preparing students for examinations such as IELTS, TOEFL, SAT and GMAT, and running summer camps under the American Paradise Camp brand.
Yola claims to have trained more than 30,000 students, with over 10,000 currently studying abroad. Alumni have been admitted to universities such as Harvard, Stanford, Yale, and Cornell.
The new capital injection will go towards strengthening the company’s products and services, building its team of professional managers and teachers, and financing the launch of new campuses. Yola has already used Mekong’s funding to open four new campuses in Ho Chi Minh City, taking it to 10 nationwide.
“We will strengthen Yola’s ability to enable more Vietnamese students to be prepared for a global education and succeed in an international environment. We share a mutual commitment to contribute to high-quality education for Vietnamese families and children and as such, empower the children of today to reach their dreams and full potential,” said Sioerd Zwinkels, who led the deal for Mekong.
Other investments out of Mekong Enterprise Fund III include Wrap & Roll, a local restaurant chain with aspirations to expand internationally, pawn shop business F88, express delivery provider Nhat Tin Investment Trading Development, and cold chain logistics specialist ABA Corporation.
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