Yuanfudao is funded by 18 investors and has raised a total of $4.1B over 11 rounds. Investors include Chinese tech giant Tencent and Singaporean sovereign holding company Temasek Holdings. The firm is currently valued at $15.5B.
Yuanfudao’s most recent valuation has exceeded BYJU’S, India’s K-12 educational platform, currently valued at $11.1B
According to an Equal Ocean article, cash revenue “for 2020 is expected to be between CNY 18 billion and CNY 20 billion, of which the K12 section has a target revenue of approximately CNY 15 billion and the adult education section approximately CNY 4 billion.
User renewal rates can be broken down into two categories: new renewals (first-time users) and old renewals. The firm has only disclosed that new renewals rates hover at around 70%, while old renewals are higher. New renewal rates are relatively low as first-time users may experience that courses are not suitable, thus leading to churn.
In terms of expenses, the firm has invested significant capital R&D as well as an aggressive advertising campaign.