The seed fund of Sequoia Capital China has invested millions of U.S. dollars in a series A round of "Math Planet," a mathematical and logical thinking education brand in China, according to a statement released on Tuesday.
The investment came as the revenue of the online education market in China reached RMB251.76 billion (US$37.38 billion) with a year-on-year growth rate of 25.7%, according to Chinese market research and consulting firm iResearch. The market is estimated to keep a growth rate of 16% to 24% in the next three to five years.
Despite the booming education market, start-ups like Math Planet, which aim at the K12 online education segment, are facing with a fierce competition from homegrown players including Zuoyebang and Yuanfudao — who are backed by some of the most powerful internet firms and investors like Baidu, Tencent, and Warburg Pincus.
Math Planet was launched by Beijing Jiayi Educational Technology Co Ltd in November 2017. The company, targeting children aged between three to seven, delivers online education services to customers through a mobile app, a WeChat official account, and a WeChat mini-program. These platforms combined have attracted over 100,000 registered users as of April 2019, with an average of about 74% paid users renewing membership after half one year, Math Planet told Chinese tech-focused online publication 36Kr.
Proceeds will be used to help the company construct its curriculum development team, and promote the brand.