Existing backer Tencent has reportedly pulled out of a $150m contribution to a round that would have valued the online teaching service at $4.5bn, due to regulatory concerns.
Internet group Tencent has withdrawn from a planned $150m investment in China-based online tutoring platform VIPKid, Reuters reported yesterday, citing two people with knowledge of the matter.
Tencent had verbally agreed to provide the money as part of a larger funding round it was set to lead at a $4.5bn pre-money valuation, according to the sources. VIPKid had initially aimed to raise $500m before dialling down that target to $150m.
The corporate pulled out due to recent government regulations that…
