At the end of this March, Tencent-backed online education platform Yuanfudao nabbed a staggering $1bn Series G round at a valuation of $7.8bn. The largest ever fundraising deal in China's edtech sector, it was also a rare deal in the midst of the coronavirus (Covid-19) crisis, shedding light on investors’ renewed interest in online education as the whole startup scene in the country saw a massive slowdown in VC activity.
Chinese online education startups raised a total of RMB 11.56bn ($1.65bn) last year, dropping by 31.4% from a year earlier. After going through a stagnant 2019, players in this sector are now witnessing how Covid-19 has turned out to be an unprecedented opportunity for fundraising and user acquisition.
According to a report by business information provider China Venture, Chinese startups raised a total of RMB 1.28bn in February, down by 63.07% from a year earlier, but the VC funding flowing into the online education sector alone
