China Online Education Startup Draws Alibaba in $1.6 Billion Funding Round

  • Zuoyebang’s fundraising follows a $750 million round in June
  • Online learning has turned red-hot this year since pandemic
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Alibaba Group Holding Ltd. and Tiger Global Management LLC led a $1.6 billion investment in Chinese online education startup Zuoyebang, underscoring how the Covid-19 pandemic has turned distance learning into a red-hot business.

Existing backers Softbank Vision Fund, Sequoia Capital China and FountainVest Partners also participated in the funding, Zuoyebang said in a statement. The latest round comes months after Zuoyebang, which also counts Goldman Sachs and GGV Capital among its investors, raised $750 million in June.