[BEIJING] Beijing-based education technology startup Yuanfudao said on Thursday that it has secured US$2.2 billion from major Chinese and international investors in two recent rounds of financing that it said lifts the company's valuation to US$15.5 billion.

One round of financing was led by Chinese social media and gaming giant Tencent, with participation from Hillhouse Capital, Boyu Capital and IDG Capital, Yuanfudao said in a statement. Yuanfudao raised US$1.2 billion in the round, Reuters has reported.

A second round was led by DST Global, and other investors include CITICPE and Singapore investors GIC and Temasek.

The new funds mean the startup, which operates live tutoring platforms and online homework services, has doubled its valuation within a year as investors increase bets on a sector that saw a surge of interest after the coronavirus pandemic triggered a migration to online classes. The company said it currently has 400 million users in China.

In March, it raised US$1 billion, valuing it at US$7.8 billion.

Yuanfudao's main rival Zuoyebang has also started a new fundraising drive at a valuation of US$10 billion, Reuters reported last month.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

REUTERS