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Yuanfudao Revenue, Valuation, Funding & Investors
Yuanfudao is valued at $17B as of December 2020, a 11.7x revenue multiple. Yuanfudao revenue was $1.4B, as disclosed with its latest round.
Last Yuanfudao valuation
$17B
Series G · Dec 2020
Last Yuanfudao funding round
$300M
Series G · Dec 2020
Yuanfudao revenue
$1.4B
Series G · Dec 2020
Key investors in Yuanfudao
IDG Capital
Tencent
Matrix Partners China
Warburg Pincus
Temasek
Hillhouse Investment
About Yuanfudao
Yuanfudao is China's leading platform for live online courses targeting primary and secondary school students. It delivers comprehensive curricula covering English, Mathematical Olympiad, and full-subject secondary programs through sessions led by nationally recognized teachers. Founded in 2012, the service enables home-based tutoring with interactive online features for students across the country.
Founded
2012
HQ
Website
Status
Privately held
Customer focus
B2C
Revenue model
Subscription
Revenue
$1.4B (Dec 2020)
Valuation
$17B (Dec 2020)
Yuanfudao Valuation
Yuanfudao is currently valued at $17B, based on its Series G in December 2020. Read the announcement ↗
The $300M round was led by YF Capital.
Yuanfudao's valuation has grown 136x from $125M at its Series C in July 2014 to $17B in December 2020, across 7 priced rounds.
Yuanfudao valuation by funding round
Revenue multiple| Date | Stage | Valuation | Revenue Multiple |
|---|---|---|---|
| Dec 2020 | Series G | $17B | 11.7x |
| Oct 2020 | Series G | $16B | 70.5x |
| Mar 2020 | Series G | $7.8B | 35.5x |
| Dec 2018 | Series F | $3B | 29.7x |
| May 2017 | Series E | $1B | 55.6x |
| Mar 2015 | Series D | $360M | - |
| Jul 2014 | Series C | $125M | - |
Yuanfudao Revenue
Yuanfudao's latest recorded revenue is $1.4B, as of its Series G in December 2020. At a $17B valuation, that implies a 11.7x revenue multiple.
Revenue grew from $18M in June 2016 to $1.4B in December 2020.
Yuanfudao revenue by funding round
| Date | Revenue * | Valuation | Revenue Multiple | Stage |
|---|---|---|---|---|
| Dec 2020 | $1.4B | $17B | 11.7x | Series G |
| Oct 2020 | $220M | $16B | 70.5x | Series G |
| Mar 2020 | $220M | $7.8B | 35.5x | Series G |
| Dec 2018 | $101M | $3B | 29.7x | Series F |
| May 2017 | $18M | $1B | 55.6x | Series E |
| Jun 2016 | $18M | - | - | Strategic investment |
* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.
Yuanfudao Funding History
Yuanfudao has raised a total of $3B across 10 funding rounds.
Yuanfudao's first fundraising round was a $2M Series A in December 2012. The most recent completed round was a $300M Series G in December 2020.
Yuanfudao funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Dec 2020 | Series G | YF Capital (lead) | $300M | $17B | Yuanfudao is a leading Chinese edtech company founded in 2012, offering K-12 online education services including livestream tutoring under the Yuanfudao brand, AI-powered Zebra AI Class, math problem-solving app Xiaoyuan Kousuan, online homework repository Yuantiku, and question search app Xiaoyuan Souti. The company focuses on live courses, AI-enhanced learning, and a closed-loop system for students across China. In 2020, Yuanfudao raised a total of approximately USD 3.5-4 billion across three rounds, culminating in a USD 300 million strategic round on December 24 backed solely by YF Capital (also known as Yunfeng Capital, founded by Jack Ma). This followed a USD 1 billion Series G in March led by Hillhouse Capital (valuing at ~USD 7.8B) and USD 2.2 billion in October split into G1 (Tencent-led) and G2 (DST Global-led) at a USD 15.5 billion valuation. The YF Capital round brought the cumulative funding to over USD 4 billion across nine rounds and elevated the post-money valuation to approximately USD 17 billion, positioning Yuanfudao as the world's most valuable edtech unicorn at the time. For 2020, Yuanfudao generated total revenues of RMB 10 billion (USD 1.53 billion), making it the highest-grossing player in China's competitive online education sector, with expectations of exceeding RMB 10 billion confirmed by company statements. It served around 4 million students in regular-priced courses, had over 30 million employees in teaching centers, and reached 400 million total users amid the COVID-19-driven boom in remote learning. The funds from the YF Capital round and prior 2020 raises were used to strengthen market position, expand product offerings, invest in AI and technology for tutoring platforms, support aggressive advertising, and prepare for a potential 2021 IPO. This occurred in a hot market where online education attracted over CNY 10 billion in H1 2020 financing alone, with the sector projected to reach RMB 485.8 billion capitalization and 37.65 million users that year. Competitors included Zuoyebang and Yiqizuoye. |
| Oct 2020 | Series G | DST Global (lead); Temasek; CPE; Trustbridge Partners; Danhe Capital; GIC; DCP Capital; Greenwoods Investment; Ocean Link | $1.2B | $16B | Yuanfudao, a Beijing-based Chinese online education company founded in 2012, provides K-12 homework tutoring, live tutoring, AI-powered classes like Zebra AI for pre-school, and tools such as problem checkers and Q&A services. It reported 400 million total users and 3.7 million paying users for core live tutoring and Zebra AI products around October 2020. The company completed a $2.2 billion Series G split into G1 ($1B in April 2020 led by Tencent) and G2 ($1.2B around October 22, 2020 led by DST Global with CPE/CITICPE, GIC, Temasek, Trustbridge Partners/TBP, DCP Capital, Ocean Link, Greenwoods, and Danhe Capital), achieving a post-money valuation of $15.5 billion, doubling from $7.8 billion in the prior round. This positioned Yuanfudao as the world's most valuable edtech unicorn at the time, amid a pandemic-driven boom in online education competing with Zuoyebang and others. Yuanfudao planned to invest proceeds in edtech innovation, new curriculum development, and expanding its online service system, leveraging its physical network of 30,000 employees in teaching centers and AI research partnerships with top universities. |
| Mar 2020 | Series G | Hillhouse Investment (lead); Tencent (lead); Boyu Capital; IDG Capital | $1B | $7.8B | Yuanfudao, a Beijing-based online education platform offering live courses, homework help, and tutoring for students, raised $1 billion in its Series G funding round in March 2020, led by Tencent and Hillhouse Capital Group, with participation from Boyu Capital and IDG Capital. The round increased the company's post-money valuation to $7.8 billion, up from $3 billion in 2018. At the time, Yuanfudao had 400 million users and ranked first in China for in-app purchases in the education category from January to mid-March per App Annie. The financing occurred amid a surge in online learning demand due to COVID-19 school closures in China, positioning Yuanfudao as a leader in the edtech sector. |
| Dec 2018 | Series F | Tencent (lead); Matrix Partners China; IDG Capital; Warburg Pincus | $300M | $3B | Yuanfudao is a Beijing-based online education platform founded in 2012, offering homework assistance via photo-solving app, live tutoring courses for K-12 subjects, practice exams, and tools for students and parents. It capitalizes on China's exam-centric culture where parents invest heavily in tutoring, with the company serving over 200 million users by late 2018. Primary revenue comes from live courses, as stated by the company. On December 26, 2018, Yuanfudao raised $300 million in a Series F round led by Tencent, with participation from Warburg Pincus, Matrix Partners China, and IDG Capital. This funding valued the company at over $3 billion post-money, up from around $1 billion in its prior 2017 round of $120 million. Proceeds were earmarked for AI R&D and app improvements. Financially, Yuanfudao reported an estimated 700 million yuan (about $101 million USD) in revenue for 2017, according to The Information. The round occurred amid a booming Chinese online K-12 market projected to reach $6 billion that year and triple by 2022. Yuanfudao competed with peers like Zuoyebang and VIPKID, which also secured massive funding. The investment propelled Yuanfudao into unicorn status doubled from prior valuation, reflecting investor confidence in its user growth and monetization via live classes in a market shifting online due to mobile internet penetration. |
| May 2017 | Series E | Warburg Pincus (lead); Tencent | $120M | $1B | Yuanfudao, founded in 2012 and originally known as Yuantiku, is a Beijing-based online education platform offering mobile apps for primary and secondary students to study for exams, solve homework problems, communicate with teachers, and access live tutoring. It spun out from social media platform Fenbi in 2014 and has grown to serve over 160 million students by 2017. The company provides products like livestreamed tutorials, math apps such as Xiaoyuan Kousuan, homework repositories like Yuantiku, and question search tools. In May 2017, Yuanfudao raised $120 million in a funding round led by Warburg Pincus with participation from existing investor Tencent, achieving unicorn status at a $1 billion valuation. This followed prior rounds including a $40 million investment from Tencent in 2016 and earlier funding from IDG Capital, Matrix Partners China, CMC Capital Partners, and New Horizon Capital, totaling over $244 million raised by mid-2017. The round solidified its position amid booming demand for online education in China, projected by iResearch to reach $40 billion by 2019 from $23.5 billion in 2016. Financially, Yuanfudao reported revenue of RMB 120 million ($18 million) in 2016, with 16,741 online courses completed and 21.48 million total attendance. It was noted as the most profitable among related programs post-Tencent's 2016 investment. The 2017 funding positioned Yuanfudao as China's first edtech unicorn, attracting attention from internet giants like Tencent, Baidu, Alibaba, and later investors. Subsequent rounds included a $300 million raise in late 2018 at over $3 billion valuation with Tencent, Warburg Pincus, IDG, and Matrix, followed by massive 2020 financings totaling $2.5 billion at up to $15.5 billion post-money. Rivals like Zuoyebang also raised significantly, highlighting competitive intensity in China's tutoring market. |
| Jun 2016 | Strategic investment | Tencent (lead) | $40M | - | Yuanfudao, founded in 2012 and originally known as Yuantiku, is a Beijing-based online education platform offering mobile apps for exam preparation, teacher communication, adaptive learning algorithms, and live online tutoring for K-12 students, particularly targeting China's competitive exam system. It spun out from Fenbi in 2014 and had prior rounds including a $1.6M Series A in 2012 led by IDG Capital, $7M Series B in 2013, $15M Series C in 2014, and $60M Series D in March 2015 co-led by CMC Capital Partners and New Horizon Capital with IDG and Matrix Partners China. In June 2016, Tencent invested $40M in a strategic round to primarily support its online tutoring platform 'Ape Tutor,' which connects students with livestreaming tutors, alongside hinted strategic cooperation. The company reported 85 million users in 2016 and completed 16,741 online courses with 21.48 million total attendance that year. Yuanfudao achieved revenue of RMB 120 million ($18 million) in 2016, marking it as the most profitable among its programs, after which it focused heavily on online tutoring post the Tencent investment. Later rounds saw valuations rise: $1B in a $120M Series E in May 2017 led by Tencent, and $3B in a $300M round in late 2018 also led by Tencent with Warburg Pincus, Matrix, and IDG. Yuanfudao competed in China's booming edtech sector against players like VIPKID, Zuoyebang, 17zuoye, and TAL Education, leveraging low customer acquisition costs (a few hundred yuan vs. TAL's 1,200 yuan) and improving retention from 30-40% to 70-80% by later years. By 2018, it had over 200 million users, 1 million paying users among 160 million registered, and $220M annual revenue, with estimated 700M yuan (~$101M) in 2017. Tencent's investments continued, building on this 2016 strategic entry. |
| Mar 2015 | Series D | CMC Capital Group (lead); Matrix Partners China; IDG Capital; New Horizon Capital | $60M | $360M | In March 2015, Yuantiku, the Beijing-based online education platform later renamed Yuanfudao, secured US$60 million of Series D funding at a valuation of US$360 million, about six months after its US$15 million Series C. The round was led by CMC Capital Partners and joined by New Horizon Capital together with existing investors IDG Capital and Matrix Partners China. Yuantiku offered a database of practice questions, largely drawn from past examinations, for students preparing for China's national college entrance exam, civil service exams and other tests, with adaptive algorithms that selected questions according to each user's performance. The company was founded in 2012 by former NetEase staff and had launched the Xiaoyuan Souti question-search app and its live tutoring product Yuanfudao, which became the group's main brand. The new capital was earmarked for product development, teacher recruitment for live courses and marketing. Yuanfudao subsequently raised US$40 million from Tencent in 2016, a US$120 million Series E led by Warburg Pincus in 2017 and, by 2020, a US$2.2 billion Series G that valued it at US$15.5 billion. |
| Jul 2014 | Series C | Matrix Partners China; IDG Capital | $15M | $125M | In July 2014, Yuantiku, the Beijing-based online question bank that later became Yuanfudao, raised US$15 million in Series C financing from its existing investors Matrix Partners China and IDG Capital at a valuation of around US$125 million. The company had previously raised US$2.2 million in Series A funding from IDG in 2012 and a US$7 million Series B from Matrix Partners China and IDG in 2013. The company was founded in August 2012 by a team from NetEase and initially ran the education community Fenbi before shifting its focus to Yuantiku, an intelligent exercise database built mostly from past exam questions for students preparing for the national college entrance exam, civil service exams and other tests. The service was offered on desktop and mobile and monetised through monthly subscription fees. The Series C capital funded product development, including the launch of a K-12 offering, and the expansion of its user base. Yuantiku went on to raise a US$60 million Series D led by CMC Capital and New Horizon Capital in March 2015 and rebranded around its live tutoring product Yuanfudao, which by 2020 was valued at US$15.5 billion. |
| Aug 2013 | Series B | IDG Capital (lead); Matrix Partners China (lead) | $7M | - | Yuanfudao, founded in 2012, received early investments from IDG Capital and Matrix Partners China across three rounds totaling $23.6 million. |
| Dec 2012 | Series A | IDG Capital (lead) | $2M | - | In 2012, Yuantiku, the Beijing-based online education start-up that later became Yuanfudao, raised US$2.2 million of Series A financing from IDG Capital. The company was founded in August 2012 by a team of former NetEase staff led by Li Yong and initially built the education community Fenbi before concentrating on Yuantiku, an intelligent online exercise database that drew mainly on past examination questions to help students prepare for the national college entrance exam, civil service examinations and other tests. The service ran on desktop and mobile and charged users monthly subscription fees. IDG's seed-stage backing was followed by a US$7 million Series B from Matrix Partners China and IDG in 2013, a US$15 million Series C from the same investors at a valuation of about US$125 million in July 2014, and a US$60 million Series D led by CMC Capital in March 2015. The group subsequently rebranded around its live tutoring product Yuanfudao, attracted Tencent as an investor in 2016 and reached a US$15.5 billion valuation in 2020, when it was described as the world's most valuable education technology company. |
Who has invested in Yuanfudao?
18 investors have backed Yuanfudao across its funding rounds, including IDG Capital, Tencent, Matrix Partners China, Warburg Pincus, Temasek and Hillhouse Investment.
Lead investors include YF Capital, DST Global, Hillhouse Investment, Tencent, Warburg Pincus and 3 other investors.
Yuanfudao Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 6 | Lead | Dec 2012 | ||
| 4 | Lead | Aug 2013 | ||
| 4 | Lead | Jun 2016 | ||
| 2 | Lead | May 2017 | ||
| 1 | Participant | Oct 2020 | ||
| 1 | Participant | Mar 2020 | ||
| 1 | Lead | Dec 2020 | ||
| 1 | Participant | Oct 2020 | ||
| 1 | Participant | Oct 2020 | ||
| 1 | Participant | Oct 2020 | ||
| 1 | Participant | Oct 2020 | ||
| 1 | Lead | Mar 2020 | ||
| 1 | Participant | Oct 2020 | ||
This data is available for Pro users. Sign up to see all 18 Yuanfudao investors. Start Free Trial | ||||
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Start Free TrialInvestments by Yuanfudao
Yuanfudao has invested in 2 companies to date.
Latest investment by Yuanfudao was on October 12th 2020. Yuanfudao invested in Spark Education Group in their $100M Series E round.
Latest Investments by Yuanfudao
| Description | Spark Education Group provides online educational courses for children through live small-group classes and interactive digital teaching materials. The business is associated with the Huohua education brand in China and operates international programmes including Spark Math and VISPARK. Its teaching model combines instructors, animated courseware and activities designed to develop mathematical understanding and problem-solving abilities. The group reported that its brands had enrolled more than half a million students since 2018 when it announced its Vietnam joint venture in 2022. Investors identified in that announcement included KKR, Sequoia, IDG Capital, GGV Capital, TrustBridge and Carlyle. Spark develops its own technology platform and localises its programmes for individual markets. | Magic Ears is an online English learning platform for children aged 5 to 12 in China. It pairs students with native-speaking teachers from the United States and Europe using interactive technology. The service creates immersive classrooms, allowing educators to concentrate on instruction without administrative burdens. Operations focus on natural language acquisition through engaging sessions. |
| HQ Country | ||
| HQ City | Singapore | Beijing |
| Deal Date | 12 Oct 2020 | 29 Aug 2017 |
| Round | Series E | Series A |
| Raised | $100M | $6M |
| Investors | Tencent; Carlyle Group | Bob Xu ZhenEdu Fund |
| Valuation | undisclosed | undisclosed |
| EV/Revenue | ||
| EV/EBITDA | ||
This data is available for Pro users. Sign up to see all Yuanfudao investments and their VC round multiples. Start Free Trial | ||
Yuanfudao Competitors
Yuanfudao competitors include listed companies like Pearson, Duolingo, TAL Education and Graham Holdings, and private ones like Guild and GoStudent.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Publicly listed | $4.8B | $1.4B | $10B | 2.5x | ||
| Publicly listed | $1B | $152M | $6.3B | 4.2x | ||
| Publicly listed | $3B | $700M | $5.6B | 0.9x | ||
| Publicly listed | $4.9B | $682M | $5B | 1.0x | ||
| Private | $100M | - | $4.4B | - | ||
| Private | $107M | - | $3.4B | - |
Yuanfudao Public Comps
Yuanfudao is still privately-owned, but its public comps include News Corp, Reddit, LY Corporation, New York Times, Pearson, Kakao, M3 Inc., New Oriental Education, Duolingo and Doximity.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $9B | $1.5B | 2.0x | 1.9x | 11.8x | 10.5x | |||
| $2.2B | $545M | 6.7x | 4.6x | 27.0x | 10.4x | |||
| $13B | $3B | 2.6x | 2.4x | 11.2x | 9.3x | |||
| $2.8B | $504M | 3.8x | 3.5x | 21.1x | 17.0x | |||
| $4.8B | $1.4B | 2.6x | 2.5x | 8.7x | 11.1x | |||
| $6.1B | $1.1B | 0.6x | 0.6x | 3.6x | 3.0x | |||
| $2.2B | $466M | 3.2x | 3.1x | 15.5x | 12.1x | |||
| $5.7B | $832M | 0.6x | 0.6x | 4.4x | 4.1x | |||
This data is available for Pro users. Sign up to see all Yuanfudao competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Yuanfudao
| When was Yuanfudao founded? | Yuanfudao was founded in 2012. |
| Where is Yuanfudao headquartered? | Yuanfudao is headquartered in Beijing, China. |
| Is Yuanfudao publicly listed? | No, Yuanfudao is a private, VC-backed company. |
| What is Yuanfudao's valuation? | Yuanfudao was last valued at $17B in its Series G in December 2020. |
| How much funding has Yuanfudao raised? | Yuanfudao has raised $3B across 10 funding rounds. |
| What was Yuanfudao's last funding round? | Yuanfudao's last funding round was a $300M Series G in December 2020, led by YF Capital. |
| Who are Yuanfudao's investors? | Yuanfudao's investors include IDG Capital, Matrix Partners China, Tencent, Warburg Pincus, Temasek, Boyu Capital, YF Capital, CPE, Trustbridge Partners, Danhe Capital and 8 others. |
| What is Yuanfudao's revenue? | Yuanfudao's latest recorded revenue is $1.4B (December 2020). |
| What is Yuanfudao's revenue multiple? | Yuanfudao's latest valuation implies a 11.7x revenue multiple ($17B valuation on $1.4B of revenue). |
| Which companies are comparable to Yuanfudao? | Companies comparable to Yuanfudao include Pearson, Duolingo, TAL Education, Graham Holdings, Guild and GoStudent. |
| How many companies has Yuanfudao invested in? | Yuanfudao has invested in 2 companies, including Spark Education Group and Magic Ears. |
| What was Yuanfudao's last investment? | In October 2020, Yuanfudao invested in Spark Education Group's $100M Series E alongside Tencent and Carlyle Group. |
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