Kaochong

About Kaochong

Kaochong, operating under Beijing Xuan Ke Technology Co., Ltd., was an online education platform established in 2015 by founder and CEO Li Haoyu. Drawing from his background in technology media at NetEase and as the founder of the education media outlet Duozhi.com, Li identified an opportunity in the university-level test preparation market. The company initially targeted the high-demand, standardized market of the College English Test (CET), which is taken by millions of university students across China annually.

The company's business model centered on providing high-quality, low-cost online courses, which fostered rapid user acquisition primarily through word-of-mouth. Its core product was the "super large live class," which could accommodate thousands of students simultaneously, creating a scalable and cost-effective delivery method. Revenue was generated directly from the sale of these online courses. The initial offering of a CET-4 course for 199 yuan sold out 2,000 slots within ninety minutes, quickly establishing the brand. This success allowed Kaochong to expand its course catalog to include preparation for postgraduate entrance exams, IELTS, TOEFL, and civil service exams. By 2018, the company served millions of students from over 2,400 universities and became one of the largest online education companies for university students in China by number of paying users.

Kaochong secured significant financial backing, including a Series A from Northern Light Venture Capital in 2015, a Series B led by Matrix Partners China in 2016, a $20 million Series C led by Tencent in 2018, and a $55 million Series D led by Hillhouse Capital later that same year. However, the company faced challenges, including the departure of key founding teachers between 2021 and 2022 and strategic missteps, such as an ill-fated expansion into offline tutoring centers. In February 2024, Li Haoyu confirmed that the company was undergoing liquidation proceedings, attributing the closure to internal management issues and shifting market dynamics. The company committed to refunding students and providing severance to employees.