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Centurium Capital Leads US$100 Million Series D Financing of Chinese Corporate Training SaaS and Services Provider Yunxuetang

2020-01-18

January 18, 2020, Beijing Yunxuetang (“YXT”, or “the Company”), a leading corporate training SaaS and services provider in China, announced today that the company has completed Series D financing round of US$100 million led by Centurium Capital (“the firm”, or “Centurium”), and participated by existing investors YF Capital and SIG. The company has previously raised six rounds of financing totaling US$200 million. According to Ruize Lu, Founder of Yunxuetang, the capital will be used to invest in content development and professional services capabilities enhancement.

Founded in 2011, Yunxuetang provides one-stop training solutions including SaaS, content development and services to thousands of big corporate clients and nearly 30,000 SMEs. Headquartered in Beijing and Suzhou, the company has branch offices in over 20 Chinese cities including Shenzhen and Hangzhou.

Yunxuetang’s total solutions include training infrastructure establishment, training materials development, training program maintenance, data analysis and vendor management to meet increasing demands for more efficient staff training as Chinese companies grow and evolve.

Gary Liu, Executive Director of Centurium Capital, commented, “We are confident of the long-term growth prospects of the business services sector. Yunxuetang’s business model of integrating SaaS, content and services significantly increased the efficiency and quality of staff training efforts of its clients. The core team of Yunxuetang are well respected industry veterans with many years of experience in technology, content development and business services.”

The market size of the corporate training industry reached RMB294 billion in 2018, according to a report by Training magazine. While substantial in size, the industry remains fragmented and without clear market leaders; providing ample opportunities for consolidation.

Ruize Lu, Founder of Yunxuetang, commented, “Other than online training, it has been an emerging trend for training service providers to be able to generate and intelligently match training materials for staff at different levels and positions. Leveraging its resources and innovative SaaS platform, Yunxuetang is developing high-quality training materials and products to meet client demands.

Centurium’s investment philosophy is to identify investment opportunities in China’s rapidly expanding consumer, services, and healthcare sectors, with an investment strategy centered around the need to “Invest to Transform”. Moreover, the Firm brings a hands-on and operations-centric approach to improve operational efficiency and solve structural deficiencies. Investments made by the Firm include, among other, Luckin Coffee (NASDAQ: LK), China Biologic Products (NASDAQ: CBPO), LOHO, Happy Kids, Keking, and UIB.