Oct 08, 2018 (China Knowledge) - Softbank Vision Fund is negotiating to invest USD 500 million into China’s online education startup Zuoyubang, setting its sights on China’s expanding online education market.
China’s online education market is currently expanding at a record rate. Last year, the market recorded a sales volume of RMB 281 billion and the number is expected to rise by 24% this year to hit RMB 348 billion and potentially hit RMB 2.9 trillion in 2020.
Zuoyebang which was founded by Baidu Inc. in 2014 is aimed to provide education facilities to primary and secondary school students. The platform allows students to upload homework questions and search for answers. The platform also includes live streaming courses and one-to-one mentoring and is reported to have 300 million users.
Zuoyebang has managed to raise a total of more than USD 500 million in its four rounds of funding since its incorporation. Its other investors include Goldman Sachs Group, Sequoia Capital and GGV Capital.
Other leading companies in the sector such as New Oriental Education and Technology Group and TAL Education Group have already gone public in the U.S. but have seen their share price going down recently. Softbank may be looking to take advantage of the situation to enter the online education space.
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