Chinese Online Education Platform Sparks Education Files for Nasdaq IPO to Raise US $ 100 Million
On June 21, Spark Education, China’s largest online education company for the small classes, submitted a prospectus to the United States Securities and Exchange Commission, requesting to be listed on the Nasdaq under the stock code “SPRK” . The underwriters include Credit Suisse, Citigroup, CICC, Futu Securities and UP Fintech Holdings.
The flyer mentioned that 40% of the funds raised this time around would be used to improve teaching methods, courseware and educational content, as well as to further expand the courses.
Established in December 2017, Spark Education mainly aims to train in mathematical thinking for children aged 3 to 10 years old and focuses on online courses for small classes. In 2020, Spark Education’s net income was approximately $ 180 million. As of March 2021, more than 370,000 students were enrolled in its courses.
Spark Education has already completed several funding rounds. In 2020, it underwent three rounds of funding from D +, E1, and E2 in April, August, and October, respectively. From 2018 to 2021, Spark Education secured eight separate funding rounds.
According to the prospectus, Spark Education’s products are primarily live online courses for small classes, supplemented by an AI course “Little Spark Enlightenment”, which covers three topics: Mathematical Thinking, Chinese and English. A typical class has 4 to 8 students. Among its courses, mathematical thought constitutes the main income of the company. In 2019 and 2020, the net income generated from its small-class online courses represented 99.2% and 95.6% of the total, respectively. Among them, the mathematical thought course represents the main part.
According to China Insights Consultancy, the national K-12 extracurricular tutoring market has grown significantly in recent years and has become the largest such market in the world as of 2020, in terms of total revenue. It is estimated that the market will reach $ 22.48 billion by 2025. Small-class classes allow students to have more frequent interactions with teachers and are generally less expensive than normal after-school classes, allowing the student to interact with teachers more frequently. platform to meet the different needs of students.
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However, the recent influence of Chinese government supervision has brought uncertainty to online education companies such as Spark Education. For example, according to Article 33 of the Law on the Protection of Minors, which entered into force on June 1, kindergartens and off-campus training institutions are not allowed to provide primary education to children of age. preschool. Spark Education cannot determine whether its service for preschool children will be recognized as elementary school curriculum instruction.
Under such pressure, Luo Jian, founder and CEO of Spark Education, said the company will develop other courses in the future to cover more children with more diverse needs.