Ping An invests in PE-backed Chinese online education start-up

Established in Taiwan by brothers Eric Yang and Ming Yang, the company initially provided classroom-based English tutorials. It subsequently launched an online platform with a view to entering the mainland market. It now serves a global customer base, with tens of thousands of teachers providing more than 10 million courses every year across English and other languages, mathematics, and programming.

ITutorGroup claims to leverage big data analytics and advanced algorithmic matching between students, classmates, teaching consultants and digital content. Its platforms include TutorABC, VIPABC, VIPJr, and TutorJr for English language learning, TutorMing for Mandarin Chinese, and LiveH2H for on-demand live interaction with experts.

Ping An will use its brand, distribution channels, and technology to support the continued development of iTutorGroup, according to a statement. The company already has exposure to education through its smart city initiative, which brings together intelligent cognition, artificial intelligence, blockchain and cloud technology.

Qiming Venture Partners was the first institutional investor in iTutorGroup, committing $15 million in 2012. CyberAgent Ventures invested a few months later. A Series B round of $100 million closed in 2014, with participation from Alibaba Group, Temasek Holdings, and SBI Group. The Series C came a year later, with GIC Private and the Russia-China Investment Fund (RCIF), among others, contributing $200 million. This took iTutorGroup’s valuation past the $1 billion mark.

Another round of funding was raised in 2018, although the size of the investment and the groups providing it were not disclosed.

China’s private education sector was worth RMB2.68 trillion ($387.6 billion) in 2018, underpinned by rising disposable incomes and parents who are willing to pay out if it means their offspring can prevail in a fiercely competitive local school system. Online accounts for 9.3% of the market. Most of the private capital entering the space has flowed into K12 start-ups, followed by adult education and language learning.

Last year represented a new high point in terms of funding, led by a $500 million Series D-plus round for VIPKid. Zuoyebang and Zhangmen each raised $350 million, while Yuanfudao and 17zuoye received $300 million and $250 million, respectively.

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• Topics
• Greater China
• Expansion
• Technology
• China
• Growth capital
• Education
• TMT
• Ping An