China’s Zhangmen Eyes US IPO

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Zhangmen, an online education company based in China, is considering a public listing in the US that’ll raise up to $300 million and has held talks with potential advisers on a share sale, Bloomberg reports.

Zhangmen is a popular online tutoring service in China that has more than 60 million registered members, the company says. It started in 2005 with a focus on afterschool learning in classrooms but in 2014 shifted focus to online one-on-one tutoring for Chinese students from as young as elementary to as old as high school students. 

Zhangmen is well-funded, backed by over $500 million in venture funding from investors including the likes of Shunwei Capital, Fortune Venture Capital, Genesis Capital, and the American private equity firm Warburg Pincus.

With a host of venture backers and over half-a-billion dollars in funding, it’s not startling that Zhangmen is reportedly heading towards an exit on the public markets.

Zhangmen is one of the biggest online education companies in China, a country that’s itself a major hub for online education companies and has produced many multi-billion-dollar online education companies listed both in China and abroad.

Like Zhangmen, another online education company that comes to mind is Zuoyebang, a company that spun off from the search engine giant Baidu and just recently closed a funding round of $1.6 billion.

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