Temasek leads $250m Series E funding in Chinese edtech startup 17ZUOYE

Singapore’s Temasek Holdings has led a Series E $250 million round of financing in Beijing-based Sunny Education, which operates under the brand name 17ZUOYE.
Reuters

Singapore’s Temasek Holdings has led a Series E $250 million round of financing in Beijing-based Sunny Education, which operates under the brand name 17ZUOYE, a major three-party K-12 intelligent education platform for teachers, students and parents in China.

In a statement on Tuesday (March 20), Sunny Education announced it would use the new funding to accelerate its expansion in the middle and high school sectors, invest in content and technology and look for complementary opportunities to build its business ecosystem.

The latest funding round comes three years after the company raised its Series D financing and is joined by new and existing investors such as CITIC Private Equity Funds Management (CITICPE) and Shunwei Capital.

“We had not raised any fund since our Series D round of financing in February 2015. During that period, we continued enriching our product offerings to cover more categories in all the three subjects in primary school education and expanded our user base,” said 17ZUOYE founder and CEO Mr Liu Chang.

The statement said 17ZUOYE covers more than 60 million users in about 120,000 schools and offers all-subject homework solutions as well as class preparation and personalised learning solutions for teachers, students and parents.

Since it formed in 2011, the company has attracted more than $385 million from investors.

Through its main monetisation models, which are intelligent supplementary textbooks and live stream tutoring, 17ZUOYE broke even at cash level last November, said Mr Liu.

Its intelligent supplementary textbooks provide tailor-made premium content to each student, generated based on the student’s daily homework data using big data and artificial intelligence technology.