YunXueTang, an employee training platform announced on Tuesday that it had raised US$22 million in a series B funding led by venture capital firm SIG, with participation from Chinese investor Li Qi.
This follows the startup’s previous funding round in 2014 from China’s Everest Venture which was worth RMB 80 million (about US$11 million).
YunXueTang is a learning management system (LMS) for employees.
The platform provides a range of services from exams to learning materials for medium and large size companies, including fields from real estate, banking, insurance, and retail.
Its products also include a learning platform for companies to create their own teaching materials, in addition to a video conferencing mobile app.
The company was founded in December 2011 by Lu Ruize, operating on a BaaS (Business-as-a-Service) model which places emphasis on content and consulting services for enterprises.
At present, the company has over 1 200 lecturers providing more than 2 000 courses for over 300 000 companies. Its customers include China Mobile Ltd, Lenovo Group Ltd., and traditional Chinese pharmaceutical company TongRenTang.
The company also claims to have recorded a revenue of RMB 100 million (about US$14 million) last year.
“Currently, a dozen of European and U.S. employee training companies have issued IPOs,” said Guo Lu, a partner at SIG. “In Europe and US, the industry is well-developed and highly penetrated, but in China, despite a 15 percent annual growth rate, the industry still focuses on providing offline services while online services are in the early stage.”
The reason for this investment, Guo Lu further adds is that YunXueTang presents the opportunity to integrate online and offline resources.
It operates on a forward-looking mindset, market accumulation, as well as an elite team which makes him believes that the company has what it takes to make it in the subversive training industry.
Meanwhile, the startup plans to use the fresh capital to improve the platform’s content, enhance consultancy services and build a sales team.
“The next step for YunXueTang is to compile its own accumulated data, and to develop in the direction of high-quality knowledge content providers,” said Lu Ruize.
By Vivian Foo, Unicorn Media
This news is published on Reuters.