Chinese edutech startup Yuanfudao (猿辅导) announced that it has raised a US$120 million funding round led by global private equity firm Warburg Pincus, according to several media report.

Existing investor Tencent also participated in the current round.

Though Yuanfudao did not disclose the exact valuation of the company, it said that the investment has secured a unicorn status for the company.

The investment itself is the largest ever recorded in China’s K-12 online learning sector.

The sector continues to bring great prospect for businesses as on average Chinese parents spend RMB3,820 (US$580) per year for one K-12 student; parents’ spending in this sector also continues to increase this year, according to a China Youth & Children Research Center report.

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Founded in 2012, Yuanfudao was formerly known as Yuantiku.

The startup changed its name when Tencent invested US$40 million in May 2016.

Yuanfudao offers online live course platform for primary and secondary school students in China. With over one million paying user base, the startup claimed to be the largest in the country for the sector.

It also offers other services such as self-practice problem set tool Yuantiku, problem solver search tool Xiaoyuansouti, and independent online professional test preparation platform Fenbi.

The startup’s mobile apps –Yuanfudao, Yuantiku, and Xiaoyuansouti– has recorded over 160 million users.

Apart from Tencent and Warburg Pincus, it has also raised a US$15 million series C round from IDG Capital and Matrix Partners China (2014), as well as a US$60 million series D round led by CMC Capital Partners and New Horizon Capital (2015).

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