Warburg Pincus, Genesis Capital invest in a Chinese online tutor

The private equity firms are betting China’s growing middle class will spend more on educating their children, especially now education online is easily accessible.

Private equity firms Warburg Pincus and Genesis Capital have invested $120 million in Chinese K-12 online tutoring company Zhangmen, betting China’s relatively low penetration rate of private tutorial services will catch up with other developed countries in Asia. 

The D-round of financing raised $120 million. This is the sixth round of financing by the company and the largest financing by a Chinese K-12 covering kindergarten to 12th grade personalised online tutoring company in China.

Capital raising by Chinese education companies has been frenzied in recent years with more than Rmb50 billion $7.66 billion pouring into Chinese online tutoring start-ups in the first half of 2017, according...

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