Shangyue Closes RMB 39 Million Angel Round | FreeS Fund Investment News

" Investor Perspective

Li Feng, Founding Partner, FreeS Fund

Email: feng@freesvc.com

Enterprise services are entering a window of opportunity. Miao Feng and his team bring together the most critical DNA for this sector — management software, e-commerce, and industrial SaaS. They've held key roles at the best companies in each of these areas, and I believe their combined expertise positions them to seize this wave of industrial internet opportunity.

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Beijing Shangyue Network Technology, a startup providing procurement digitization services for large and medium-sized enterprises, recently announced the completion of a RMB 39 million angel round. The round was co-led by Yinxingu Capital and SIE Capital, with FreeS Fund and Dingju Investment participating. "This funding will be used for team building and product R&D," said Miao Feng, founder and CEO of Shangyue.

Shangyue is an intelligent company that provides procurement digitization solutions for large and medium-sized enterprises. Through its intelligent procurement middle platform, SaaS applications, and operations services, Shangyue helps each client build its own dedicated procurement internet platform, enabling fully online and digital procurement processes that improve efficiency and reduce costs.

Founder Miao Feng spent 11 years at Yonyou Software and 5 years at Alibaba's internet business, where he served as Vice President at Yonyou, head of Alibaba's early new retail O2O initiative, and general manager of large enterprise procurement for Alibaba's B2B business group. He also served as CEO of a joint venture between Alibaba and China Minmetals. With deep cross-sector experience spanning software and internet, he has extensive practical knowledge and strategic insight into enterprise digitization, B2B e-commerce, and large enterprise procurement supply chains.

"We are in a great era of transformation from informatization to digitization," Miao Feng noted. "In the informatization era, enterprises focused internally on processes, management, and outcomes. In the digitization era, the focus shifts to outside-in transformation — more attention on commerce, external engagement, data, and operations. In enterprise procurement, using technology to optimize procurement efficiency and reduce costs aligns precisely with what enterprises care about most in their digitization journey."

Under the digital wave, four major trends are emerging in enterprise procurement:

• The enterprise procurement market represents RMB 40 trillion in annual transaction volume, with only 2% currently conducted offline. With explosive annual growth, digitization on the procurement side is driving B2B development.
• Mainstreaming of middle platforms: Alibaba introduced the middle platform concept three years ago, centered on extracting and integrating capabilities to help enterprises connect front-end and back-end systems and improve commercial efficiency. Under this framework, enterprise middle platform construction will become a major wave in coming years. The core idea is helping enterprises connect externally to solve commercial problems, and the procurement middle platform will be a key engine driving rapid enterprise procurement digitization.
• E-commerce-ization of procurement: While 2C e-commerce platforms are already widely understood and adopted, enterprise procurement will follow a similar pattern, using e-commerce models to sell goods and services to businesses. Currently, domestic e-commerce platforms are all developing B2B business lines, and numerous vertical B2B e-commerce players have emerged. This will drive enterprise purchasing through e-commerce platforms, with traditional supplier procurement models shifting to e-commerce formats.
• Deepening inter-enterprise connections: Connections between enterprises can be categorized into three layers from shallow to deep — the first layer is information matching, where business opportunities are connected online but transactions completed offline; the second layer is enhanced communication, where applications like DingTalk and WeCom streamline communication channels and improve transaction efficiency; the third layer is full online transaction processing. As internet infrastructure becomes ubiquitous and the digitization of contracts, invoices, logistics, and settlement improves, deep connection networks centered on large enterprise buyers will gradually take shape.

Shangyue's product and service offerings comprise three components: an intelligent procurement middle platform, procurement SaaS applications, and operations services. The procurement middle platform includes business, technology, and data middle platforms, enabling enterprises to rapidly build procurement internet capabilities with internal connections to ERP, finance, SRM, and other systems, and external connections to suppliers and e-commerce platforms. It supports three deployment models: public cloud, hybrid cloud, and dedicated cloud. The procurement SaaS applications include an enterprise procurement marketplace, external collaboration network, and universal sourcing — respectively addressing digital procurement of non-production materials, online transactions and collaboration between enterprises and external suppliers/e-commerce platforms, and universal supplier sourcing.

"Our target customers are manufacturing, energy, internet, and infrastructure companies with annual revenue between RMB 1 billion and RMB 100 billion. We've already signed three customers," said Cheng Xu, Shangyue's co-founder and chief business architect. "Over the past two months, we've visited more than a dozen customers and can deeply feel their urgent desire to transform digitally. Digitization is entirely new — it's not simply installing software. We need to understand our customers' commercial procurement chains, build technology products on internet architecture, and help customers operate successfully after launch. That's why we've been able to sign customers so quickly in just two months." Cheng Xu previously worked at Oracle, Deloitte, and Alibaba, specializing in procurement and supply chain. He has served on procurement projects for major enterprises including China Unicom, Huawei, and BYD.

Miao Feng said: "I'm grateful for the trust and support of our investors in this round. There are three main reasons we were able to complete our angel round smoothly in the current capital environment: First, we must thank Alibaba — several of us founding partners have an Alibaba background, and Alibaba's halo still shines on us in this round, for which we're deeply grateful. Second, our investors and partners share our read on the trends — everyone is very bullish on the B2B track, and we presented investors with a clear development roadmap. Third, our team has deep thinking and practical experience across software, procurement, and internet e-commerce."

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