Zhangmen Education, a Shanghai, China-based online after-school tutoring platform, filed with the SEC to raise up to $100 million in an initial public offering. It plans to list on the NYSE under the symbol ZME.
The company reported RMB4,018.4 million (US$613.3 million) net revenues in 2020, marking a 50.6% increase from the previous year. That mainly comes from 544,813 paid student enrollments of its online one-on-one after-school tutoring in 2020.
Founded in 2014, Zhangmen’s offerings include one-on-one and small-class after-school tutoring services covering all K-12 academic subjects.
Online K-12 after-school tutoring courses are generally divided into one-on-one, mini-class (1-10 students per class), small-class (10-100 students per class), and large-class formats (more than 100 students per class) in China.
The company said it has been the largest online K-12 one-on-one after-school tutoring service provider in China in terms of gross billings since 2017, with 31.9% market share in 2020.
To supplement the main business of one-on-one services and attract more students, it also launched small-class K-12 after-school tutoring services, and early childhood education services covering subjects, including art, language skills, logical thinking, and learning methodology.
The company said its online K-12 small-class services rapidly became the third largest in China in terms of gross billings in 2020.
In addition to a revenue jump in 2020, Zhangmen posted a net loss of RMB1,012 billion in 2020, down 32.7% from the previous year, which is mainly due to the improvement of brand value and the extension of business matrix. As of March 31, 2021, it reported a net loss of RMB497 million in the first quarter.
According to Crunchbase, the company has raised more than 500 million over 6 rounds. The latest funding was raised on Jan 23, 2019 from a Series E round.