How To Break Through The Children'S English Track By Whale Foreign Teacher Training

On January 26, Peiyou, a brand of online English class for young children, announced that it had completed the B + round of financing, which was led by New Oriental and followed by ocean capital, a domestic alternative asset management institution.

It is understood that whale foreign teacher Peiyou is an online young children's English brand positioned as "Peiyou". It has been established for eight years, mainly for young children aged 3-18. In the first five years of whale's existence, the founding team mainly polished products on their own children. In 2017, whales began to explore on a large scale, and obtained early investment from mountain capital and fresh capital.

About a year ago, in February 2020, Peiyou, a foreign teacher of whale, won the 100 million yuan round B financing led by ocean capital. In addition to the B + round of financing, the cumulative financing amount of whale foreign teacher Peiyou Series B reaches 220 million yuan.

"The recognition and investment of New Oriental will help whale gain more support in terms of brand and resources in the future. New Oriental has rich resources in the upstream and downstream of the industrial chain. In the future, the two sides will have more opportunities for cooperation in terms of traffic, copyright, etc Recently, Wu Hao, CEO of whale foreign teacher Peiyou, said in an exclusive interview with 21st century economic report.

Form differentiated positioning by "training excellent"

Wu Hao disclosed that after the completion of round B financing in early 2020, the company will mainly focus on product optimization and business development. At that time, the whale did not deliberately seek a new round of financing, but investors came to communicate with the company. In August 2020, New Oriental's investment team began to contact with whales. After deep exchanges, the two sides recognized the value of cooperation, and quickly finalized the B + round of financing.

This is also the first time that New Oriental, as the "ancestor" of English training industry, has invested in children's English live broadcast products for the first time. Wu Hao said that for New Oriental, its own business is mainly offline English, and online business is mainly adult English and K12 English. "Its previous layout of quality education English is not very rich. The whale reflects its own characteristics and forms a certain business complementarity with New Oriental." He said.

The strategic investment team of New Oriental said that whale's educational philosophy and product features meet new Oriental's expectations for English quality education products. In the future, New Oriental will also vigorously support the development of whales in resources and other aspects.

Taihe capital is the exclusive financial advisor of the round of financing for whale. According to Jiang Kaiyang, director of Taihe capital, the reason why whale can continue to gain favor from capital is that it has formed a very strong differentiation positioning with its value proposition of "cultivating excellence".

Jiang Kaiyang said: first of all, the goal of "training excellent students" is to achieve effect and selection, which is significantly different from children's enlightening English speaking, which also enables whales to cover the learning needs of subjects at K12 stage; secondly, "Peiyou" is a more efficient teaching method, and it is a good way for language learning to abandon the mode of reading according to the book and adopting heuristic and dialogue teaching; Finally, "training excellence" is a universal demand. Whale courses cover from zero basis to college entrance examination. Cultivating niuwa of all ages is a good way of brand communication.

Pay attention to the rapid development under the healthy economic model, not eager to make profits

According to an analysis of the 21st century economic report by an education industry insider, New Oriental has been committed to the online business of adding code in recent years. It is also a common way to invest in external online education start-up companies.

As a matter of fact, when the industry develops into the deep water area, more and more M & A events appear. For example, in November 2020, pea thinking announced the merger with magic ear, a brand of online English small class. The two sides transformed into the whole subject quality education category in the way of complementary subject quality categories.

Wu Hao told the 21st century economic report that whales have a very healthy development momentum and will maintain independent development. In 2021, whale will launch more products and more Internet-based product experience, such as multi scene learning, closed-loop product matrix, medium price products, etc.

In terms of business data, in September 2020, the monthly revenue of whale will reach 150 million yuan, and the profit of the first UE will be 15%. The average revenue and the annual development scale of users will be about three times. By October, the number of paid students for whale foreign teachers has increased by 220% year on year, and the team size has now exceeded 1000.

When will whales be profitable? Wu Hao said that if the team reduced its annual growth rate to 20%, it would be profitable at present. However, it is not necessarily the right choice to achieve profit at this stage. If enterprises sacrifice the growth rate for profits, there is no big prospect in the future. So now the team is thinking more about how to run faster under a healthy and reasonable economic model, rather than eager to make profits.

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