China math tuition platform VIPThink secures $180m

Other investors include US-listed English language training business New Oriental Education & Technology, a fund controlled by the family of Dongqing Cai, founder of animation start-up Alpha Group, DCM Ventures, Sinovation Ventures, and Enlight Growth Partners.

Sinovation backed VIPThink’s angel round in 2017 and has re-upped in each subsequent round. Entertainment business Happy Elements led a Pre-A round in 2018 and DCM led a $15 million Series A in 2019. A Series B of undisclosed size closed later the same year, with New Oriental taking the lead. Audio content platform Ximalaya also took part.

VIPThink recently announced the acquisition of online English-teaching platform Magic Ears, which previously received backing from Yuanfudao, China’s largest education start-up, ZhenFund, and Hillhouse Capital. 

The merger brings numerous synergies. VIPThink and Magic Ears both target children aged 3-8, providing live-broadcast classes. Class sizes tend to be small, comprising 4-6 children, and feature interactive games. For VIPThink, it is a shortcut to establishing a multi-disciplinary platform.

Post-acquisition, VIPThink’s monthly revenue exceeds RMB220 million, up from RMB80 million in March and just RMB300,000 in July 2018, according to the firm’s previous announcements. The company claims to have more than 250,000 students across 360 cities in 50 countries and regions. Its renewal and referral rates are both above 85%, while the parent satisfaction rate is 96%.

VIPThink's direct competitor is Huohua Siwei, which raised $100 million in the second tranche of the Series E round in October led by Tencent Holdings featuring The Carlyle Group and Yuanfudao. KKR led the first tranche of the Series E - worth $150 million - in August. 

Huohua is also in the process of becoming a multi-disciplinary platform. Earlier this year, it expanded into English-language learning, offering classes for children aged 3-5. This followed the launch of a Chinese-language option in 2019. 

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• Topics
• Greater China
• Expansion
• Technology
• China
• Education
• Sinovation Ventures
• SoftBank Capital