Vietnamese edtech startup VUIHOC invests in ELT chain The IELTS Workshop

Vietnamese edtech startup VUIHOC has made a strategic investment in English language teaching chain The IELTS Workshop in a seven-digit USD transaction, DealStreetAsia has learnt.

This development comes a year after the edtech firm raised $6 million in a new funding round led by Southeast Asia-focused venture capital firm TNB Aura. The round also included participation from TKG Taekwang, IBK-STIC Pioneer fund, and existing investors such as Do Ventures, BAce Capital, and Vulpes.

Founded in 2017 by Dang Tran Tung, The IELTS Workshop aims to become a leading IELTS teaching and test preparation centre in Vietnam. So far, it has 11 centres across the country. The company said that it supported 26,498 learners to achieve their goals, according to its website.

VUIHOC, which means “fun learning” in Vietnamese, is led by co-founders Do Ngoc Lam and Do Minh Thu who are experienced in system development and strategic business management. The company claims to have served over 150,000 students across Vietnam since its inception in 2019.

Its teaching framework is built on a weekly programme, closely following the textbook curriculum. To improve interaction between teachers and students, VUIHOC also offers live classes. Weekly live lessons are conducted on the VUIHOC mobile app under the direction of a team of instructors who are skilled in both pedagogy and online communication.

The firm used the proceeds from the last funding round to enhance its product offerings and leverage the application of AI technology.

VUIHOC currently has 300,000 students on its platform and has seen more than 2,500,000 application downloads. It has developed five products including VUIHOC DUO (online group class); VUIHOC TUTOR (online tutoring class), VUIHOC STATION (live class model), IELTSPEED (online learning), and IELTS exam preparation model applying AI technology.

VUIHOC co-founder and CEO Do Ngoc Lam stated that the strategic investment collaboration with The IELTS Workshop will leverage the former’s expertise in technology and AI alongside the experience and programmes offered by The IELTS Workshop. Through this partnership, VUIHOC aims to develop top-notch IELTS training programmes, offering students across the country access to high-quality education at an affordable price.

Vietnam’s education sector has seen several M&As in recent times, even attracting interest from overseas strategic players. In 2023, Japanese education company Gakken Holdings acquired shares from existing stockholders and through third-party allotment in Vietnamese textbook publisher DTP Education Solutions.

Indonesian edtech company Ruangguru acquired the Vietnamese online learning platform Mclassin May last year to expand its reach in Vietnam — a market it entered in 2019 through a platform called Kien Guru.

Meanwhile, the edtech sector in Vietnam continued to garner investor interest as startups sealed fundraising rounds.

In May this year, Prep, a Vietnam-based online learning platform specialising in standardised language test preparation, closed a new Series A round co-led by Cercano Management and Northstar Ventures.

In February, NativeX, a Vietnam-based edtech startup, announced raising a total of $4 million in its seed funding round co-anchored by Ansible Ventures and Blueprint Ventures.

Most recently, Excelsior Capital Vietnam Partners (ECVP), the Vietnam arm of Hong Kong-based private equity firm Excelsior Capital Asia, invested in English language training company Kapla Vietnam. The transaction details were not disclosed.

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Written by: Quynh Nguyen, Nguyen Thi Bich Ngoc

22 May 2024