Lele Ketang(乐乐课堂), an online K-12 education content and services platform in China, announces today its Series C round of financing with 40 million dollars. So far, the company has completed four rounds of financing, with a cumulative financing amount of US$85 million.
The latest deal is led by Owl Ventures, with original shareholders Morningside Venture Capital, Lightspeed China Partners, New Oriental Education and Culture Industrial Fund (EDU Fund), and Bluerun Ventures also participating. According to Mao Ying, the founder and CEO of Lele Ketang, the fund will be used for investments of talent, content, and technology.
Founded in 2014, Lele Ketang started its business with short-video product Tiantianlian(天天练) covering more than 80% of the knowledge points in the K12 stage. Meanwhile, the company launches a product named Lexuetang(乐学堂) for public schools and educational institutions with a dual-teacher system to solve the pain points of lacking high-quality teaching resources. As of mow, Lexuetang has covered more than 50,000 schools and 300,000 teachers across the country.
According to iResearch, there are approximately 130 million primary and middle school students in third-tier cities and below, accounting for 80.3% of the K12 tutoring market. The second-tier cities account for 13.2% while first-tier cities only for 6.5%. So in recent years, educational institutions like New Oriental, TAL, and GSX have begun to layout business in Tier 2 and 3 cities.
In 2016, Lele Xuetang opened its first offline direct-operated demonstration center in Yuci, Shanxi province. So far, the company has opened offline direct-operated demonstration centers in more than 20 third- and fourth-tier cities and cooperated with over 4,000 educational institutions in more than 300 cities and more than 1,300 villages and towns nationwide.