(Yicai Global) July 2 -- A Beijing-based online English school has raised CNY120 million (USD18 million) in its A-round funding led by Hillhouse Capital Group and ZhenFund, online news outlet QQ reported.

Founded in March last year, Magic Ears Technology offers classes of up to four children aged between five and 12. It charges CNY4,000 (USD600) to CNY7,000 for a year of lessons based on the curriculum of the Common European Framework of Reference for Languages. That should be half of what similar instruction costs in China, the report said.

The startup is the latest online educator to have secured investor interest. VIPKid raised USD200 million last year for a valuation of USD1.5 billion. The market for online language lessons in China is expected to be worth USD8 billion by next year, according to data from consultancy firm iResearch.

Magic Ears' qualified and experienced teaching staff come from the US and Canada, its website shows. Kids are more conversational in group classes than in one-on-one lessons because they are more sociable and adaptable than adults, according to Chief Executive Jin Lei.

Editor: Emmi Laine