Temasek leads $250m round for China’s Sunny Education
Sunny Education, a China-based K-12 online education platform which operates under the 17zuoye brand, has raised $250 million in a Series E round led by existing investor Temasek Holdings.
New investor CITIC Private Equity also took part in the round while Shunwei Capital, another existing backer, re-upped.
Founded in 2011, 17zuoye started out as a platform for kids to learn mathematics and English. It then expanded into other subject areas, providing homework, class preparation, and personalized learning materials. The company also offers reports on students, making it easier for teachers and parents to track their progress.
The platform now has over 60 million users - including 40 million students, 20 million parents, and 1.9 million teachers.
17zuoye has received more than $385 million in funding over the last six years. Zhenfund provided seed capital in 2012, and Shunwei committed $5 million in Series A round the following year. The two investors put in another $10 million in 2013. In 2014, 17zuoye raised $20 million in a Series C round from Tiger Global Management, Shunwei and H Capital. A year later, H Capital led a $100 million Series D round for the company.
Two products – online supplementary textbooks and live-streaming tutoring – have been successfully monetized, allowing 17zuoye to break even by November of last year. With the new funding, the company will accelerate its expansion in the middle school and high school segments, while further strengthening its leading position in the primary school sector, according to a statement.
China’s K-12 online education space has drawn strong interest from VC and PE investors. For example, online English education platforms Dada ABC and VIPKid previously raised $100 million and $200 million, respectively. Meanwhile, Zhangmen, which offers tuition across a range of subjects, raised $120 million from Warburg Pincus and Genesis Capital.
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