IDG, Vertex lead $52.5m round for NetDragon’s online education unit

The funding round values the education subsidiary at $477.5 million.

Hong Kong-listed NetDragon said in a statement that it is expanding into education sector with a view to building an ecosystem that focuses on developing kindergarten through Year 12 (K-12), vocational, non-academic education by leveraging mobile internet technologies.

In late 2013, it partnered with China-focused PE firm Vision Knight Capital and a unit of Taiwan's electronics maker Hon Hai Precision Industry to launch a $33 million online education venture, with NetDragon as the biggest shareholder.

Upon completion of the transaction, NetDragon's stake in Best Assistant Education will fall from 86.15% to 77.96%, according to a regulatory filing. The new funding will be used to accelerate product development for the company's on mobile education platform.

"Education is crucial to an individual's development and is pivotal to improving one's quality of life. However, not much innovation has happened in this sector over the past many years." Tay Choon Chong, managing director and CIO of Vertex Venture, said.

IDG holds a 15.67% interest in NetDragon. The company reported a net profit of RMB57.7 million in the third quarter of last year, down 24.1% from the same period in 2013. Revenue came to RMB232.7 million, up 6.1% year-on-year.

In 2013, NetDragon sold 91 Wireless, China's biggest mobile app stores and game operator, to Baidu for $1.85 billion.

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• Topics
• Greater China
• Venture
• China
• TMT
• Vertex Management (II)
• IDG Capital Partners
• Venture
• Education