“Better Teacher Better Future”

Founded:March 2012 in Beijing, China

Category:E-Learning, EdTech, Tutoring

Primary office: Beijing, China

Core Technical Team: Beijing, China

Status: Private

Employees:10001+

Amount raised:$1.5B (8 rounds – March 31, 2020)

OVERVIEW

  • Large online Chinese education platform offering comprehensive curriculum from primary school to grade 12 [3]
  • Provides a variety of education services: Online courses, intelligent exercises, live tutoring and problem analysis through a series of online education apps
  • Uses technology to enhance the learning experience, stimulate learning interest, and cultivate scientific learning habits
  • Provides Chinese students with more convenient access to high quality educational resources.

 

PERFORMANCE METRICS

  • Valuation: $7.8 billion
  • Revenue: $423 million to $560 million (2019)
  • Cumulative users: 400 million in China (2020)
  • Web traffic: 2.3+ million monthly web visitors

 

ACHIEVEMENTS

  • First unicorn company in the Chinese K-12 online education field (2017)
  • Yuanfudao’s MARS system (developed by the Neuro-linguistic programming team) ranked first in MSMARCO(Microsoft Machine Reading Comprehension) leaderboard [5])
  • Yuanfudao’s artificial intelligence and data modelling exceeded human level [5]
  • Ranked first globally in Stanford Question Answering Dataset (SQuAD); praised as “Queen of the Internet” with its artificial intelligence power (2018)
  • Established online AI Research Institute for training and sharing five independent research and development technologies with industry
  • Forbes China 50 Most Innovative Companies (2019)
  • 6 Yuanfudao apps included in the first list of educational apps published by the Chinese Ministry of Education (2019)
  • Hurun China 500 Most Valuable Private Companies (2019)
  • Secured $1 billion in Series G funding during the outbreak of covid-19, pushing the valuation to $7.8 billion (2020)
  • Created an e-learning industry record by providing free live courses for 5 million elementary and middle school students nationwide on the same day (2020) [3]

Sells

  • Yuanfudao App – online tutoring app that offers K-12 multi-subject tutoring, including live course and real-time Q&A
  • Yuantiku App – a learning assistant that provides junior/high school students with real/previous exam questions, instant diagnostic reports, and portable error notebook
  • Yuansouti App – a question search engine that provides detailed solutions and video explanations
  • Xiaoyuankousuan App – a homework corrector where students provide handwritten answers, review incorrect answers, and obtain online assigned exercises
  • Banmaaike App – an online learning intelligent education platform serving children aged 2-8 with artificial intelligence-based course products for multiple disciplines, including English and Chinese learning, and mathematical thinking

Channels

  • Exclusive online education partner of TV show “Super Brain”
  • Provide free high-usage tools to users and promote through the platforms and preferential question sets
  • Improve social image by helping Wuhan during the coronavirus outbreak: donated 10 million Yuan and live courses for 20 million students
  • Establish personalized learning diagnosis and growth files, helping build scientific twelve-year plan for students
  • Head teacher 1v1 tutoring and real-time Q&A
  • Large-scale online model test that enable authentic simulation of real test, automatic system correction, and scoring
  • Available and convenient on PC, IPad and cellphone
  • Provide free trial courses before the subscription, establish reward system and enhance the fun and interactivity in courses
  • Invite famous masters to give lectures and interact with students online
  • Good reputation through the recommendation of parent circles, teachers, friends and family, etc.

Competencies

  • One of the largest and most varied educational tech companies in Asia
  • Ability to raise capital with excellent market competitiveness and profitability
  • Ability to serve millions of students at the same time
  • Ability to advance technology – apply voice recognition, handwriting recognition and other technologies to product functions such as photo search, intelligent correction of English composition, ancient poetry assistant, etc.
  • High customer retention – the renewal rate of primary school customers exceeds 80%
  • Localized teaching content and targeted courses supported by huge database

Resources

Assets

  • Strong technical support from Ali Cloud – full link monitoring, capacity assessment, online disaster recovery, fault drills, etc., to guarantee the availability, reliability, security, and stability of the system
  • Partnership with “Super Brain” to launch special courses and become the exclusive player registration and selection agent
  • Academic cooperation with Oxford University and Cambridge University Press to provide students with a global perspective and scientific thinking
  • Tencent-backed online education firm
  • Guaranteed teaching quality
  • Unique learning behavior database with billions of entries on student answers and questions

Processes

  • Expand brand influence through sponsoring popular variety shows such as “Super Brain,” “CCTV New Year’s Gala,” “Ace vs Ace” and TV adverts
  • Continuously update products to improve customer experience – improving basic functions, introducing targeted large-scale live classes, and optimized course management
  • Set up million-dollar progress scholarships (with multiple companies) to reward middle school students who improve their grades through Yuanfudao online tutoring and are admitted to prestigious schools
  • Hire first-line experienced senior teachers with 1% admission rate
  • Organize free live courses
  • Exclusive interviews with top scorers of college entrance examination over the years

Priorities

  • Applying technology as a breakthrough to improve learning efficiency and quality
  • Target revenue over 10 billion Yuan in 2020 to achieve leading revenue in E-tech industry
  • Take advantage of quarantine to expand enrollment
  • Ride the global trend to online learning
  • Upgrade products through database and customer feedback
  • Exploit excellent teacher resources to solve the shortage of quality online teachers

Assertions That Best Describe What the Company Did to Scale Early, Rapidly & Securely

  1. Develop and sell offers that are hard to replicate, original, fit successful commercialization patterns, and ride an external trend
  2. To show the company’s technical and knowledge expertise, develop and demonstrate a product or service prototype; demonstrate how technology and knowledge experience contribute to the company’s scaling master plan; enhance the academic and technical reputation of the team; ensure that the company’s proposed technological concept is valid; and contribute to university research projects
  3. Apply big data, machine learning and artificial intelligence to generate predictive analytics and enhance automation
  4. Continuously improve value propositions based on results and feedback
  5. Operate a large data collection and service center
  6. Apply big data analytics to produce insightful information about users, suppliers and customers to enhance shopping pattern analysis, improve customers experience, predict market trends, provide more secure online payment solutions, increase personalization, optimize and automate pricing, and provide dynamic customer service
  7. Use a cross-channel customer-centric approach to provide a seamless, unified, and contextual customer experience, irrespective of device, channel, or platform of interaction
  8. Deploy digital technologies capable of servicing customer that can scale
  9. Provide platforms that are client centric and highly customizable

References

  1. baike.baidu.com. (n.d.). 百度百科——全球最大中文百科全书. [online] Available at: https://baike.baidu.com/item/%E7%8C%BF%E8%BE%85%E5%AF%BC [Accessed 16 Jun. 2020].
  2. Crunchbase.(2012). Crunchbase. [online] Available at: https://www.crunchbase.com/organization/yuanfudao/funding_financials [Accessed 16 Jun. 2020].
  3. developer.aliyun.com. (n.d.). 在云之上的猿辅导,撑住了500万中小学生的挑战-阿里云开发者社区. [online] Available at: https://developer.aliyun.com/article/745036 [Accessed 16 Jun. 2020].
  4. GeekPark.(n.d.). 十倍招生,百亿营收,猿辅导这样拿下高瓴的 10 亿美元 | 极客公园. [online] Available at: https://www.geekpark.net/news/257775 [Accessed 17 Jun. 2020].
  5. Wikipedia Contributors (2020). K–12. [online] Wikipedia. Available at: https://en.wikipedia.org/wiki/K%E2%80%9312 [Accessed 25 Jan. 2020].
  6. www.36kr.com. (n.d.). 36氪独家 | 猿辅导完成 10 亿美元新一轮融资,为教育行业史上最大一笔融资_详细解读_最新资讯_热点事件_36氪. [online] Available at: https://www.36kr.com/p/5306879 [Accessed 16 Jun. 2020].
  7. www.woshipm.com. (n.d.). 产品分析 | K12在线教育机构那么多,为何猿辅导成了独角兽? | 人人都是产品经理. [online] Available at: http://www.woshipm.com/evaluating/3557932.html [Accessed 17 Jun. 2020].
  8. www.yuanfudao.com. (n.d.). 猿辅导在线教育,全国累计用户突破4亿. [online] Available at: https://www.yuanfudao.com/ [Accessed 16 Jun. 2020].
  9. 新浪教育 (2019). 猿辅导联手《最强大脑》全程战略合作 同步推定制课. [online] edu.sina.com.cn. Available at: http://edu.sina.com.cn/l/2019-01-13/doc-ihqfskcn6781910.shtml [Accessed 18 Jun. 2020].
  10. 知乎专栏. (n.d.). 猿辅导登顶MSMARCO:机器阅读理解超过人类水平、力压百度微软. [online] Available at: https://zhuanlan.zhihu.com/p/34989603 [Accessed 16 Jun. 2020].

Contributors

  • Nan Yang