According to the anonymous screenshot released by users of microblog platform, vipkid had the problem of accounting fraud during this round of financing, and Tencent has started to investigate it. In the screenshot, the words bankruptcy and thunderstorm appeared.
For the screenshot, vipkid official response interface news said that the screenshot was rumor.
On October 8, VIPKID just announced a new round of financing, in which Tencent, the leading investor, invested $150 million and valued at $4.5 billion. According to VIPKID, as of August 2019, its platform had more than 700,000 students and 90,000 foreign teachers in North America.
As one of the most famous online education unicorns, VIPKID has been the target of investment institutions for quite a long time. In addition to three investments by Tencent, VIPKIDs investors include Sequoia Capital, Yunfeng Fund, longitude and latitude China and Bryant Stibel, a basketball star.
Since 2016, VIPKID has maintained a fast annual financing rhythm, and the amount of financing has been rising. As early as January 2019, The Information, the US technology media, quoted people familiar with the situation as saying that VIPKID was seeking to raise the latest round of financing from $400 million to $500 million at a pre-investment valuation of $6 billion. Ten months later, VIPKID finalized and announced the financing.
VIPKID is not an example of the negative news that comes from the large amount of financing. DaDaDa, another online childrens English brand, was reported in February this year that the actual amount of financing was not in line with the published amount. At the same time, there were widespread layoffs and a large number of customer complaints on third-party platforms. It was less than a month before DaDa DaDa announced that it would receive $255 million in D-round financing from Huaping Capital, Good Future and Chungbao Investment.
LatePost later reported in August that the good future had begun negotiations on DaDaDas acquisition. DaDaDa founder Pi Hui responded that the news was untrue.
Online childrens English has achieved rapid development in the past four years, but negative evaluation and problems have also begun to emerge. On July 15, 2019, the Ministry of Education and other six departments issued Opinions on the Implementation of Regulating Off-campus Online Training, which put forward requirements for online training teachers, training content, training duration and charging methods. After becoming a capital darling, online education needs to enter a new era of standardized development.