Vietnamese media group Galaxy Media and Entertainment announced on Thursday that it has acquired a majority stake in local edtech startup Hocmai for an undisclosed amount, making its first foray into the country’s burgeoning education sector.
The Hanoi-based Hocmai, founded in 2007, is an online education portal which works on a freemium model. Students can access some courses for free, while full access requires a subscription fee ranging from VND 1 million (USD 43) to VND 3 million (USD 129). The firm boasts a student base of 4 million subscribers with over 1,000 courses provided by 200 teachers.
“We have been looking for an opportunity in edtech for over a year. Hocmai has the largest market share in the online 1-12 grade education segment in Vietnam. By investing into Hocmai, we believe the company will have more resources to continue to serve the increasing demand for online education in the country,” said Luong Cong Hieu, CEO of Galaxy Media and Entertainment.
He added that the firm will explore the possibility of edtech businesses with a focus on K-12 and vocational training.
With 17 million K-12 students, Vietnam spends the equivalent of almost 6% of its GDP on education every year and people spend up to 40% of their disposable income on education. A handful of edtech firms have sprung up to fill the increasing demand, with notable names in the market including English pronunciation app ELSA and Topica Edtech Group, which offers online degree programs and tutoring with augmented reality.
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