China-based online education services provider Yuanfudao is in the process of raising a $350m funding round led by a $250m commitment from internet group Tencent, The Information reported on Friday.
The round is set to value Yuanfudao at $2.8bn pre-money according to The Information, though Yuanfudao denied it is raising cash while Tencent declined to comment on the report.
Founded in 2012, Yuanfudao operates several mobile apps that provide online courses and study guides to students in primary and secondary education, and which also enable students to communicate directly with teachers.
The company was spun out of now defunct social media platform Fenbi in 2014. It had previously raised more than $203m in total funding and was valued at $1bn as of a $120m round in May 2017 that was led by private equity firm Warburg Pincus and backed by Tencent.
Tencent had already co-led a $60m series D round for Yuanfudao in 2015 with CMC Capital Partners and New Horizon Capital, and which also featured Matrix Partners China and IDG Capital.
IDG and Matrix also took part in the company’s $15m series C round in 2014 and a $7m series B in 2013, after IDG had led $1.6m series A in 2012.
