Lessons are increasingly being conducted online because of the impact of the COVID-19 pandemic. The demand has been a boon for online education platforms. China-based Yuanfudao has raised US$1 billion in a new financing from investors such as Tencent Holdings, Hillhouse Capital Group, Boyu Capital, and IDG Capital.
With the additional fund, the company, which offers online courses and homework plans to students, is now valued at US$7.8 billion.
Yuanfudao has 400 million users and 11 teaching and curriculum development centres in China.
The financing is a spark of hope for startups looking for more funding to carry out their plans during this challenging period. Many have been stuck as investors seem to have hit the pause button on funding activities.