Primavera backs Chinese maths-focused education platform
Primavera Capital Group has led a RMB300 million ($45 million) Series D round for online mathematics education platform Yangcong 345, with participation from Beijing Kunlun Technology and existing backer Legend Capital.
The new capital will be used to support the development of the company’s online curriculum and artificial intelligence-powered (AI) teaching tools, according to a statement.
Established in 2013, Yangcong has gone through six rounds of funding amounting to RMB600 million. Investors include Morningside Venture Capital, Star VC, Qingsong Fund, Frees Fund, Morale Capital, Tongdao Capital, and Tencent Holdings, as well as Legend and Kunlun.
The company wants to enable a more equitable distribution of learning materials. At present, students in first- and second-tier cities have better access than their peers in lower tier locations.
It offers over 1,500 animated online tutorial videos and a self-developed teaching system focused on mathematics and physics. It claims to have served 20 million students, 60% of whom live in third-tier cities or below, across 150,000 Chinese primary, middle and high schools.
The company has also developed a system through which teachers can produce teaching materials and analyze how students apply themselves to work. It has been adopted by more than 600,000 teachers in 1,000 schools in Chongqing, Beijing, Shanghai and Nanjing.
“Customized education for students is the wish of every Chinese parent and this is becoming a reality in the internet age. By leveraging AI and big data, Yangcong manages to bring high-quality education to a mass audience,” said Fred Hu, founder and CEO of Primavera.
According to iResearch Consulting, China’s K-12 online education market will be worth RMB150 billion by 2022, up from an estimated RMB44 billion by the end of this year. A lot of private capital has been drawn into the space, with the likes of Baidu spin-out Zuoyebang, 17zuoye and Yunfudao also raising sizable rounds in the past 12 months.
Other education start-ups have gained traction in different market segments. For example, VIPKid and Dada ABC are primarily platforms for English language courses, Kaochong focuses on university students, while recently listed Liulishuo targets English language learning for adults.
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