Tencent-Backed Edtech Startup Seeks Funding at $20 Billion Value
- Company plans to raise at least $1 billion in latest round
- Rapid growth of tutoring apps has drawn Beijing’s scrutiny
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Tencent Holdings Ltd.-backed Yuanfudao is seeking fresh funding at a valuation of more than $20 billion, people familiar with the matter said, as the cash-burning battle in China’s online education arena shows no sign of abating.
The Beijing-based tutoring app is planning to raise at least $1 billion and has held discussions with investors including Boyu Capital and DCP Capital, according to people familiar with the matter. The funding round has yet to be finalized and the size will depend on investor interest, the people said, asking not to be identified as the information isn’t public.