Source Code Capital portfolio company Ruigu announced the completion of a $250 million Series D funding round, with existing shareholder Source Code Capital continuing to increase its stake.

源码资本·October 22, 2021·0·0

Recently, Ruigu (Shanghai Xinyi Linhe Technology Co., Ltd.), a leading domestic MRO industrial digitization company, announced the completion of a $250 million Series D funding round. The round was led by Primavera Venture Partners, with participation from Taikang Life Insurance, Prologis GLP, C&D Emerging Investment, Source Code Capital, Eastern Bell Capital, CDH Investments, and Chengwei Capital. **Source Code Capital was the sole investor in Ruigu's Series A round and has continued to support its Series A+, B, and C rounds.** To date,

Recently, Ruigu (Shanghai Xinyi Linhe Technology Co., Ltd.), a leading domestic industrial digitalization company in the MRO space, announced the completion of a $250 million Series D round. The round was led by Primavera Venture Partners, with participation from Taikang Life Insurance, Prologis GLP, C&D Emerging Investment, Source Code Capital, Eastern Bell Capital, CDH Investments, and Chengwei Capital. Source Code Capital was the sole investor in Ruigu's Series A round and has continued to support its Series A+, B, and C rounds. Since its founding six years ago, Ruigu has rapidly grown into a leading enterprise in MRO product distribution. Beyond its continued recognition from capital markets, Ruigu has also won one "headwind battle" after another — navigating "price wars" and pandemic disruptions with ease, iterating continuously, maintaining 100% growth for three consecutive years, and steadily improving profitability.

After World War II, the United States, as the "world's factory," leveraged its market scale, production capacity, and logistics infrastructure to nurture countless outstanding companies, including several in the industrial MRO sector valued in the tens of billions of dollars. Today, in post-pandemic China, manufacturing upgrading and transformation are being driven in ways entirely unlike anything in history; still-fragmented industrial supply cannot achieve physical aggregation overnight, still-underserved production parties cannot be consolidated through service integration, and manufacturing customers still facing cost pressures will continue to struggle.

Therefore, from its inception, Ruigu chose a development strategy uniquely suited to China. Given the highly fragmented and dispersed nature of Chinese industry, where information and transaction flows remain highly traditional, Ruigu built a distinctive digital highway for Chinese industrial product distribution — enabling seamless connection between Chinese MRO manufacturers and industrial production owners, delivering an unprecedentedly smooth experience. On this "digital new infrastructure" that Ruigu has constructed, industry participants can embrace the demands of the digital economy era — MRO manufacturers can focus more on strengthening their products and technology, as well as digital transformation of factory operations, allowing quality MRO products to naturally gain more exposure and sales; while industrial production owners, through access to better products and systematic, standardized services, can improve operational efficiency and competitiveness.

China's manufacturing sector is currently in a period of deep reform, undergoing transformation from production-oriented to service-oriented models, and from the low end to the mid-to-high end of the value chain. Beyond the new MRO industry infrastructure, Ruigu also provides a range of digital intelligence empowerment and services to quality producers and service providers in the industry, helping excellent industrial manufacturing enterprises upgrade and transform, driving the shift from "Made in China" to "Intelligently Made in China," thereby accelerating supply-side reform in Chinese industrial manufacturing.

Gao Yang, founder and CEO of Ruigu, stated: "China is undergoing a transformation from a manufacturing giant to a manufacturing powerhouse. Ruigu is fortunate to participate in this great opportunity of our era, contributing to the reshaping of quality supply and supply methods for Chinese industrial products, as well as digital intelligent supply chains. Following this funding round, we hope to deepen our empowerment of upstream and downstream industry players around Ruigu's current digital infrastructure, with an open posture to help more industrial product manufacturing enterprises that are 'sufficiently innovative, technologically sound, and manufacturing-capable' enhance their competitiveness in China and globally, and to serve more industrial enterprises in operating more efficiently. Under the national direction of promoting the integrated development of the digital economy and the real economy, we will contribute to the rise of China's industrial products industry."

Xingshi Wang of Source Code Capital stated: "Ruigu is a leading industrial product digitalization enterprise in China. Ruigu has reshaped industry infrastructure through its innovative digital supply chain model, providing downstream partners with a 'more, faster, better, cheaper' digital industrial product supply chain. Based on deep insight into the needs of its vast user base and profound understanding of the characteristics of different industrial product categories, Ruigu is precisely and efficiently driving transformation across the upstream and downstream of the industry: upstream, deeply cooperating with and serving quality domestic industrial product manufacturing enterprises; downstream, empowering hundreds of thousands of partners with better digital tools and professional knowledge. Source Code Capital has supported Ruigu since its Series A in 2016, and we believe Ruigu will make even greater contributions to advancing the digital transformation of China's industrial products industry."