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- Yuanfudao
Yuanfudao Revenue, Valuation, Funding & Investors
Yuanfudao is valued at $17B as of December 2020, a 11.7x multiple on its last reported $1.4B revenue.
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
Hillhouse Investment
Warburg Pincus
Boyu Capital
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.
The $300M round was led by YF Capital.
Yuanfudao's valuation has grown 138x from $124M at its strategic investment round in June 2016 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 |
| Aug 2020 | Series G | $13B | 5.0x |
| Mar 2020 | Series G | $7.8B | 35.5x |
| Dec 2018 | Series F | $3B | 29.7x |
| May 2017 | Series E | $1B | 55.6x |
| Jun 2016 | Strategic investment | $124M | 6.9x |
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, while the revenue multiple moved from 6.9x to 11.7x.
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 |
| Aug 2020 | $2.6B | $13B | 5.0x | 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 | $124M | 6.9x | 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 $4B across 9 funding rounds.
Yuanfudao's first fundraising round was a $7M Series B in August 2013. 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 | $1B | $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. |
| Aug 2020 | Series G | Tencent (lead); Boyu Capital; IDG Capital; Hillhouse Investment | $1.2B | $13B | Yuanfudao, a Beijing-based online education platform offering K-12 tutoring, AI learning tools like Zebra AI Class, and adult education via apps like Yuanfudao and Fenbi, completed its Series G financing in 2020, raising $2.2 billion across G1 and G2 rounds. The G1 round of $1 billion was led by Tencent with Hillhouse Capital, Boyu Capital, and IDG Capital; G2 of $1.2 billion was led by DST Global with GIC, Temasek, and others. The rounds valued the company at a post-money $15.5 billion USD, doubling from $7.8 billion six months prior, positioning it as the world's most valuable edtech unicorn at the time. Investors included the queried Boyu Capital, Hillhouse Investment, IDG Capital, and lead Tencent, aligning closely with the August 2020 approximate date amid reports of a $1.2 billion raise pushing valuation above $13 billion initially. Yuanfudao projected 2020 cash income of CNY 18-20 billion (using lower end), with K12 targeting CNY 15 billion and adult education CNY 4 billion, reflecting strong growth fueled by pandemic demand in China's online education market. The firm reported 3.7 million users across core K12 and preschool products. |
| 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 | $124M | 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. |
| Jul 2014 | Series C | Matrix Partners China; IDG Capital | $15M | - | - |
| 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. |
Who has invested in Yuanfudao?
16 investors have backed Yuanfudao across its funding rounds, including IDG Capital, Tencent, Matrix Partners China, Hillhouse Investment, Warburg Pincus and Boyu Capital.
Lead investors include YF Capital, DST Global, Tencent, Hillhouse Investment, Warburg Pincus and 2 other investors.
Yuanfudao Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 5 | Lead | Aug 2013 | ||
| 5 | Lead | Jun 2016 | ||
| 3 | Lead | Aug 2013 | ||
| 2 | Participant | Mar 2020 | ||
| 2 | Lead | Mar 2020 | ||
| 2 | Lead | May 2017 | ||
| 1 | Participant | Oct 2020 | ||
| 1 | Lead | Dec 2020 | ||
| 1 | Participant | Oct 2020 | ||
| 1 | Participant | Oct 2020 | ||
| 1 | Participant | Oct 2020 | ||
| 1 | Participant | Oct 2020 | ||
| 1 | Participant | Oct 2020 | ||
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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 is a Shanghai-headquartered online learning provider established in 2018 that offers live small-group classes in math and Chinese language for K-12 students. The portfolio includes VISPARK with curricula aligned to Singapore Math and Common Core, Huohua Siwei for Chinese subjects, Allschool as a tutor marketplace, and ClassPod for interactive sessions. Spark Education Group serves over 100 countries through its platforms backed by investors such as KKR and Sequoia China. | 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 | $1.5B | 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 News Corp, LY Corporation, New York Times and Kakao, and private ones like Koubei and ShareChat.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Publicly listed | $9B | $1.5B | $17B | 2.0x | ||
| Publicly listed | $13B | $3B | $24B | 2.6x | ||
| Publicly listed | $2.8B | $504M | $11B | 3.5x | ||
| Publicly listed | $5.9B | $1.1B | $11B | 0.9x | ||
| Private | - | - | $8B | - | ||
| Private | $77M | - | $5B | 64.9x |
Yuanfudao Public Comps
Yuanfudao is still privately-owned, but its public comps include News Corp, New York Times, Kakao, Pearson, LY Corporation, New Oriental Education, M3 Inc., Duolingo, TAL Education and Reddit.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $9B | $1.5B | 2.0x | 2.0x | 12.2x | 10.9x | |||
| $2.8B | $504M | 3.8x | 3.5x | 21.1x | 17.4x | |||
| $5.9B | $1.1B | 0.9x | 0.9x | 4.8x | 4.1x | |||
| $4.8B | $1.4B | 2.4x | 2.3x | 8.1x | 10.4x | |||
| $13B | $3B | 2.8x | 2.6x | 11.9x | 10.3x | |||
| $4.9B | $563M | 1.0x | 0.8x | 8.8x | 5.6x | |||
| $2.3B | $473M | 3.1x | 3.0x | 14.8x | 11.6x | |||
| $1B | $152M | 5.4x | 4.9x | 37.3x | 17.9x | |||
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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 $4B across 9 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, Tencent, Matrix Partners China, Boyu Capital, Hillhouse Investment, Warburg Pincus, Temasek, YF Capital, CPE, Trustbridge Partners and 6 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 News Corp, LY Corporation, New York Times, Kakao, Koubei and ShareChat. |
| 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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