Tencent has shelved plans to invest about US$150 million to lead a fresh fundraising round for Chinese education firm VIPKid, two people with knowledge of the matter said, as Beijing tightens oversight of online education platforms.
VIPKid dismissed the news as untrue and said it was in fundraising talks with Tencent and other investors. Tencent did not respond to a request for comment.
According to the people, the Chinese tech giant had given a verbal nod for the investment and VIPKid had hoped this would help lure others to the fundraising that would value the company at US$4.5 billion prior to the financing round.
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