TAL Education Group invests US$30M in Phoenix E-Learning
TAL will receive 32 per cent equity in China’s leading online education startup.
TAL Education Group, a K-12 after-school tutoring service provider in China, has invested US$30 million in Phoenix E-Learning, which operates China’s largest online educational platform serving the public school system.
Founded in 2003, Phoenix E-learning runs Zxxk.com, which it says is used in more than 30,000 public schools in China and has more than 15 million registered users.
This investment marks yet another move by TAL to become the leading player in online educational startups in China. TAL’s learning center network already includes 303 physical learning centers in 19 main cities in China.
In May this year, TAL acquired Gaokaopai, another educational startup site aimed at prepping students for China’s notorious Gaokao examination, a prerequisite for entrance into higher education institutions.
“TAL,” an acronym for “Tomorrow Advancing Life” is a publicly-traded Chinese education firm based in Beijing (NYSE:XRS). TAL provides tutoring services to students from preschool to Grade 12 through small classes, personalized tutorials and online courses.
Major Chinese Internet companies are also stepping into the market, acquiring and investing in online education startups.
In April 2014, Hujiang, one of the most popular language-learning sites in China, formed a partnership with smart TV and online video company LeTV. Huijiang also raised US$80 million in Series C funding from Chinese search giant Baidu.