Education Services Provider Gaosi Raises $140 Million - Caixin Global
Summary
Xu promised in the statement that Gaosi would not compete directly with schools outside its hometown, saying the company “will not open any teaching centers outside Beijing” but will instead develop its role as a service provider. The money raised in the latest round will mostly be spent on product research and development, as well as to cover technological expenses in its “Online Merge Offline” strategy. The company also announced a strategic partnership with Tencent Holdings Ltd.’s cloud computing unit to develop technologies for the education sector. “K12 extracurricular tutoring in China is a promising field that has the potential to grow into a trillion-yuan market,” said Gordon Ding, managing director at Warburg Pincus who specializes in tech-related investments. But the sector is also a sensitive one in China, amid growing calls to ease the burden on children who often get forced to take numerous extracurricular classes by parents anxious to see them succeed.