As Chinese online tutoring companies pile up, India cashes in
Investors healing their wounds from the brutal sell-off of Chinese education stocks should consider a trip west. In India, home to the largest population of primary and secondary school students in the world, the online education sector is booming.
Chinese education stocks have lost billions of dollars in market value over the past two weeks as Beijing announced regulations that could wipe out much of the after-school tutoring industry.
But the money is rushing into another populated Asian giant. Indian e-learning platform Unacademy has raised $ 440 million at a valuation of $ 3.44 billion from investors including SoftBank Vision Fund and Singapore public investment fund Temasek has the company announced on Monday. Unacademy’s valuation has jumped more than 10 times in the past 18 months, according to the company.
And its rival Byju, backed by Chinese Tencent and Sequoia, is India’s most valuable unicorn with a valuation of $ 16.5 billion, according to market research firm CB Insights. General Atlantic and Tiger Global are investors in both companies. Byju’s could be on the lookout for an initial public offering in the next 18 months, according to local media.
Last year, venture capital investments in Indian education technology companies totaled nearly $ 1.5 billion, six times the 2019 level, according to Bain & Co.. transactions and the average transaction size have increased.