BEIJING/HONG KONG (Reuters) – Chinese online education platform Yuanfudao is set to raise $1.2 billion in a new funding round which will value it at about $13 billion, according to two people with direct knowledge of the issue.
Yuanfudao’s existing investors, Tencent Holdings (0700.HK), Hillhouse Capital and Boyu Capital, will invest in this round, according to the people. The three are vying for a leading role in the fundraising with Tencent being the frontrunner, one of them said.
The eight-year-old company has nearly doubled its valuation within six months. In March, Yuanfudao raised $1 billion that valued it at $7.8 billion.
The company is planning to raise more fresh capital to include new investors in the near term at a different valuation, said one of the people, who declined to be identified as the information is confidential.
Yuanfudao and Boyu declined to comment. Tencent and Hillhouse did not