Singapore edtech startup LingoAce banks $6m in Sequoia India-led round

Singapore-based edtech startup LingoAce said it has raised US$6 million in a series A+ round led by Sequoia Capital India.

Beijing-based Shunwei Capital, a VC firm focused on mobile internet, deeptech, and consumer internet of things (IoT), also joined the round as a returning investor, according to a statement.

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Founded in 2017, LingoAce offers an online platform that leverages multimedia, gamification features, and AI-powered tools for Chinese language learning. It allows students worldwide to participate in real-time classes with native Mandarin-speaking teachers.

The startup said it plans to use the new funds to accelerate its expansion in Southeast Asia and bolster its technology capabilities and recruiting talent. To date, LingoAce claims it has delivered lessons to more than 100,000 registered students across 80 countries with more than 2,000 certified teachers on its platform.

“Today, over 100 million people outside of China, 27 million of whom are K12 students, are learning Chinese. And this number has been growing at 20% to 30% year on year,” said Sequoia Capital (India) Singapore managing director Abheek Anand. This opportunity has increased even more with the onset of the Covid-19 pandemic, the exec added.

According to data from Valuates Reports, the global online education market size is projected to reach US$245.9 billion by 2026, up from US$153.2 billion this year.

The report attributed this growth to the rising demand for affordable education, increasing government initiatives promoting online education, and climbing internet and smartphone penetration. The Covid-19 pandemic is also expected to further drive the online education market size up, with more colleges, universities, and businesses operating remotely.

Edtech startups in the region are experiencing exponential growth and raking in capital amid the pandemic as well.

Byju’s, one of the global leaders in the space, said it has seen over 20 million new students on its platform since the pandemic began. It had more than 64 million registered users and 4.2 million annual paid subscriptions as of September this year.

Chinese edtech startup VIPThink also recently bagged US$180 million in a series C round led by SoftBank Vision Fund 2. It claims to have generated over US$33.2 million in monthly revenue and aims to onboard 10,000 teachers and serve 1 million students in the future.