Tencent-Backed Startup’s Valuation Tops $2.8 Billion in China’s Online Education War

Tencent is investing a further $250 million in online education startup Yuanfudao at a valuation of $2.8 billion, according to people familiar with the matter.

As online education services have become more widely accepted in China, local internet giants and other global tech investors are all doubling down on the sector’s leading players. Yuanfudao’s existing investors include Tencent as well as Warburg Pincus, Matrix China Partners and IDG Capital. SoftBank, meanwhile, is in talks to invest $500 million in a competing education app called Zuoyebang, a spinoff from search engine Baidu, Bloomberg reported last month.