China-based online tutoring platform VIPKid closed a series E round today led by internet company Tencent that earlier media reports suggested could be worth as much as $500m.
Tencent is thought to have committed $150m to the round, although the corporate had briefly withdrawn its support in August. VIPKid was reportedly targeting a $4.5bn valuation for the round but has not confirmed any financial terms.
Founded in 2013, VIPKid maintains an online education portal that enables Chinese pupils to take English lessons with tutors in North America through one-on-one video chats. The service had grown to 700,000 students and 90,000 teachers by the end of August this year.
VIPKid also operates Lingo Bus, which runs immersive online courses for children to learn Mandarin Chinese, and SayABC, which relies both on tutors and interactive content such as games to teach children English.
The funding will allow VIPKid to drive content and technology development and recruitment, as well as improve operational and organisational efficiencies.
Tencent and VIPKid will extend their existing collaboration in the areas of online education, artificial intelligence, cloud services and charitable education.
VIPKid had previously received more than $825m in funding. Tencent co-led its $500m series D-plus round in June 2018 with Coatue Management, Sequoia Capital and Yunfeng Capital.
Tencent had also taken part in a $200m series D round in 2017 alongside ZhenFund, Sinovation Ventures and returning backers Sequoia Capital China, Yunfeng Capital and Matrix Partners China.
