Edtech startup LingoAce nets $7m from Shunwei for Southeast Asia expansion

LingoAce, a Singapore-based online language learning platform, announced that it has raised US$7 million in series A funding from Shunwei Capital, a Chinese venture capital fund co-founded by Xiaomi founder Jun Lei.

The startup previously raised US$3 million following an angel round in 2018 and a pre-series A round with Decent Capital last year.

Photo credit: LingoAce

Founded in 2017, LingoAce helps students aged between six and 15 to learn Mandarin online. With nearly 1,000 native speakers teaching from China, the platform now serves more than 10,000 students across Asia, North America, and Europe, the company said.

The new funds will be used to expand its operations in Southeast Asia, starting with Indonesia, considering the population and the gap between demand and supply in the archipelago. The startup noted that it has already reached a few customers in Thailand, the Philippines, and Malaysia as well through its office in Singapore. LingoAce also operates in Beijing, Wuhan, and Los Angeles.

Some established names in the online language learning space include the likes of US-based Duolingo, which has almost US$150 million in total funding, according to Crunchbase. There’s also London-based Busuu.

Compared with other players, LingoAce CEO and founder Hugh Yao said, “Our key differentiation is that we are closer to the market to develop and execute appropriate product strategy, while keeping strong supply operation (on the teacher side) in China at same time.”

Looking ahead, the company will leverage emerging technologies such as AI, augmented reality, and virtual reality as it sees an uptick in online learning adoption amid the pandemic. Yao said the company saw its revenue grow by more than 4x from January to May.