(Yicai Global) Oct. 16 -- YoKID, a mid- to high-end child care and early education brand owned by Winnovator Group Inc., has raised tens of millions of yuan in its first round of financing.
It will use this take to promote its business and expand its offline child care centers.
SoftBank China Capital (SBCVC) led the fundraising. YoKID will apply the proceeds to develop teaching materials for children, bring in excellent early childhood educational experts and foreign teachers, improve offline and online users' experience and further develop its education centers and corporate business, said Timothy So, company founder and chief executive. YoKID will open eight to 12 offline child education centers in first-tier cities, including Shanghai, Shenzhen and Guangzhou in the coming year and provide child education services to more leading companies, 36kr.com reported today.
Established in March 2015, YoKID focuses on early childhood education and child care for kids aged between one and six.
YoKID has three business segments, including offline child education centers and services for companies and online child-rearing advisory and training services. Its offline business is its cash-cow, making up 88 percent of its total. Each offline center generates revenues of USD2.74 million to USD4.26 million (CNY18 million to CNY28 million). YoKID provides child education services to over 100 firms, has online growth data on more than 2 million children, and boasts hundreds of thousands of paid users, with a client retention rate of nearly 100 percent.
The market for child care and education for kids aged between zero and six is worth USD50 billion in the US, said Zhou Ye, a partner at SBCVC. In comparison, China's early childhood education market suffers low industry concentration, with few influential, cross-regional child education brands and child care agencies. Yet Chinese parents born in the 1980s and 1990s prefer high quality services, and the country has 120 million kids aged between zero and six. Apart from strong demand, SBCVC is also upbeat about YoKID's standardized, systematic and high-quality services and earnings models.