Matrix leads Series E tranche for China corporate training platform

Sequoia Capital China and Hundreds Capital also took part. It follows a first tranche of $100 million in January, which was led by Tencent Holdings.

Yunxuetang, now valued at $1 billion, claims to be the best-funded start-up in China's corporate training space, with more than $390 million raised to date. This includes a RMB70 million ($10 million) Series B from SIG and Ximalaya, a $50 million Series C in 2018 led by Yunfeng Capital, and a $100 million Series D led by Centurium Capital in January 2020.

Founded in 2011, the company provides end-to-end training solutions including a software-as-a-service (SaaS) platform, teaching materials, and related services such as customized program development. It serves more than 16 million learners, through a client network comprising 3,000 large corporates and 300,000 small and medium-sized enterprises (SMEs).

Corporate customers include China Merchants Bank, COFCO Group, FAW Group, Tong Ren Tang, Haier Group, and Didi Chuxing.

Yunxuetang started out as a content platform, aggregating training course options, but soon came to the conclusion that there wasn't much available that satisfied user demand. In 2019, the company launched its own curriculum standards and systems. Last year, it entered the digital consulting space.

According to Yunxuetang, corporate training entered a period of explosive growth in 2020 as a result of COVID-19. On one hand, companies were obliged to shift offline training online. On the other, SMEs have upped their pace of business digitalization.

“Yunxuetang’s SaaS products have a large market share and high user satisfaction rate among top customers. The company has also demonstrated strong content development and customer service capabilities. It is the largest and most comprehensive corporate training technology company in China,” said Lingye Zuo, a partner of Matrix.

The country's enterprise training industry was worth RMB768.1 billion in 2020 and it will surpass RMB900 billion by 2025, according to Qianzhan Industry Research Institute. Though substantial in size, it remains fragmented, without clear market leaders. This is expected to provide ample opportunities for consolidation.

Other relevant activity includes a $20 million Series C for 51CTO, an online technology training platform, last year. Meanwhile, vocational training services specialist Sanjieke raised an RMB130 million Series B in 2019 and Kaikeba spun out from Huike Group and secured an RMB550 million Series A round.

Index Capital served as the exclusive financial advisor for Yunxuetang's Series E.

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• Topics
• Expansion
• Technology
• Greater China
• China
• Education
• Matrix Partners
• Sequoia Capital
• Hundreds Capital
• Growth capital