GGV-backed Chinese edtech startup nets $100m in series D, E rounds

Erwan Technology, a Chinese edtech startup focused on financial education, announced that it has completed two funding rounds at nearly US$100 million.

Its series D round was led by PAC Capital, with participation from Qiming Venture Partners, while Xingzhi Capital headlined the company’s series E raise.

Lingfeng Capital, along with existing investors Qiming Venture Partners and PAC, also joined in the latter round.

Photo credit: Bancai Xuetang

Founded in 2017, Erwan provides business and finance education via livestreaming and audio courses to help users improve their wealth management skills. It operates under brands such as Bancai Xuetang and Iqiniu and claims to have served over 10 million users to date.

The fresh capital will go toward the company’s market expansion, research and development efforts, as well as its workforce expansion plans, said the firm in a statement.

The Beijing-based company is backed by K2VC, GGV Capital, and DCM Ventures China.

“With the increase of household income and the decrease of market interest rates, wealth management-focused education has become a rigid demand,” said Ning Ma, founding partner at Lingfeng Capital.

In 2019, the head chief of Zurich-based Institute for Financial Planning, Felix Horlacher, told China Daily that residents’ combined assets in China are expected to hit over US$70 trillion in the coming decade. Meanwhile, China has more than 5 million high net worth households, who each have at least 1 million yuan (US$160,000) in investments every year.