Chinese online tutor Zuoyebang seeks $600-$800mln at $6.5bln valuation -sources

East Buy Holding

05/06/2020 11:58

By Yingzhi Yang and Kane Wu
    BEIJING/HONG KONG, June 5 (Reuters) - Online tutoring
start-up Zuoyebang is in talks to raise $600-800 million in a
new funding round as the coronavirus pandemic encourages
investor interest in education technology, two sources with
direct knowledge of the deal told Reuters.
    The five-year-old Chinese company is valued at $6.5 billion
prior to the investment, the sources, who spoke about
Zuoyebang's plans on condition of anonymity, said, adding that
the talks were fluid and subject to market fluctuations.
    A spokesman told Reuters that the information was not
accurate, but declined to provide further details. He said
Zuoyebang had "kept good contacts" with capital markets.  
    Students in China can upload their homework questions and
search for answers on Zuoyebang's platform, which uses
artificial intelligence.
    Education technology, known as "edtech", has been one of the
few sectors to be boosted by the coronavirus pandemic as schools
were shut and students were asked to take online classes from
home in China, which has started to slowly reopen schools. 
    Zuoyebang, which was founded by Chinese search engine giant
Baidu  BIDU.O  in 2014 and spun off in 2015, has also launched
live-streaming courses.
    Its investors now include Goldman Sachs  GS.N , Sequoia
Capital China, Coatue Management and GGV Capital. Its last
fundraising was in 2018, when it secured $350 million and was
valued at less than $3 billion, researcher Hurun has said.
    Yuanfudao, Zuoyebang's main competitor in China, said in
March it had secured $1 billion in a new round of financing that
valued it at $7.8 billion.  urn:newsml:reuters.com:*:nL4N2BO0UR
    Zuoyebang also competes with other Chinese "edtech"
start-ups including 17zuoye, Koolearn Technology  1797.HK 
and TAL Education Group  TAL.N .

 (Reporting by Yingzhi Yang in Beijing and Kane Wu in Hong Kong;
Editing by Brenda Goh and Alexander Smith)
 ((Yingzhi.Yang@thomsonreuters.com; +861056692133;))