Yuanfudao, an online education startup based in Beijing, has won a billion dollars in fresh funding from prominent investors including Tencent (TCEHY) and Hillhouse Capital.
The eight-year-old company, which runs an online platform for live tutoring and homework help, is now valued at $7.8 billion.
The investment is notable because startups in China have found it notoriously difficult to raise funds in recent months.
Over the past year, deal activity has slowed so much that it's come to be known as the "capital winter." Disruption from the coronavirus pandemic is prolonging the problem.
The online education industry, however, is widely expected to benefit as schools around the world remain closed and millions of children stay home.
"Previously, investors looked at (educational technology) as a niche industry," Adam Nordin, who covers the sector for investment banking at Goldman Sachs, said in a recent research briefing.
Not so much anymore, he added.
"We’re also seeing more interest from long-term investors, such as pensions and sovereign wealth funds, as well as family offices, all of whom appreciate the long-term secular drivers for the space."
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