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The
five-year-old Chinese company is valued at $6.5 billion prior to
the investment, the sources, who spoke about Zuoyebang's plans
on condition of anonymity, said, adding that the talks were
fluid and subject to market fluctuations.
A spokesman told Reuters that the information was not accurate,
but declined to provide further details. He said Zuoyebang had
"kept good contacts" with capital markets.
Students in China can upload their homework questions and search
for answers on Zuoyebang's platform, which uses artificial
intelligence.
Education technology, known as "edtech", has been one of the few
sectors to be boosted by the coronavirus pandemic as schools
were shut and students were asked to take online classes from
home in China, which has started to slowly reopen schools.
Zuoyebang, which was founded by Chinese search engine giant
Baidu <BIDU.O> in 2014 and spun off in 2015, has also launched
live-streaming courses.
Its investors now include Goldman Sachs <GS.N>, Sequoia Capital
China, Coatue Management and GGV Capital. Its last fundraising
was in 2018, when it secured $350 million and was valued at less
than $3 billion, researcher Hurun has said.
Yuanfudao, Zuoyebang's main competitor in China, said in March
it had secured $1 billion in a new round of financing that
valued it at $7.8 billion.
Zuoyebang also competes with other Chinese "edtech" start-ups
including 17zuoye, Koolearn Technology <1797.HK> and TAL
Education Group <TAL.N>.
(Reporting by Yingzhi Yang in Beijing and Kane Wu in Hong Kong;
Editing by Brenda Goh and Alexander Smith)
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