A-Discovery Education announces yesterday its A round of financing with 50 million yuan. The investor is Xi'an Tourism Group Tang Financial Holding and Investment, and the two sides will co-establish a new company to promote the brands of A-Discovery. The latest fund will be used to expand offline direct and franchise centers, the upgrade of course products, and human resources development.

Founded in 2007, A-Discovery Education has developed as a group operating a comprehensive educational business. It has integrated parent-child education, childcare, kindergarten, education investment, online education, and business schools. The offline early childhood education business is mainly concentrated in northwestern China. In 2019, A-Discovery achieved a revenue of more than 50 million yuan, mainly from direct and franchise store business.

Looking at the demand-side, children now sent to childcare or early childhood education centers are mainly from 12 months to 3 years old. But existing institutions are far from meeting the potential needs. From the perspective of income, Li Wenhui, the founder of A-Discovery, estimates that the 10-year ROI period of the childcare industry is around 21%-53% in the Chinese market. The premise is a reasonable top-down design, good business operation, and an enrollment rate of over 83%.