4 Companies Close Funding Rounds, 8 Undergo Strategic Upgrades, Multiple Firms Named "2018 King of New Economy" | Source Code Capital Monthly · November
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More than four years since Source Code Capital's founding, the family of portfolio companies has grown into a thriving forest. Ma Hui has become a platform where Source Code's LPs, partners, and entrepreneurs exchange ideas. Ma Hui Zhi records the incremental progress of our community, shares the joy of growth, and looks forward to an even brighter future.
Ma Hui Zhi — November
Contents
「Funding」
Baibu
Announced completion of $100 million Series C2 round
Xinchao Media
Received strategic investment from Baidu
PanPay
Raised tens of millions of RMB in Pre-A round
Zhangshang Fucai
Completed $8 million Series A round
「Milestones」
ByteDance
Co-founded BAAI (Beijing Academy of Artificial Intelligence)
Douyin
Domestic daily active users surpassed 200 million
Lianjia
Announced comprehensive quality upgrade plan "Lianjia for the People, Quality First"
Ziroom
Asset management platform fully deployed nationwide whole-building apartment business
Chuxin
Chuxin X1 pioneered connected features to safeguard food safety
Linlinyi
Announced RT-Mart China logistics general manager Liu Kunhua officially joined
Moran AI
Released in-car OS to comprehensively build automotive application ecosystem
WeiMai
Medical health service open platform launched
「Quotes」
Zheng Wei: Building a "data dictionary" for used car dealers
Leo Liu: Giving every child an AI teacher
Xiao Zhilong: Three elements of fresh grocery e-commerce
「Awards」
Multiple Source Code portfolio companies
Won nearly 20 awards at 36Kr's "2018 New Economy Kings"
ByteDance
Won "CCF Science and Technology Progress Excellence Award"
KE Holdings
Won Deloitte China's "2018 China Technology Fast 50"
Knowbox
Won "2018 Most Commercially Valuable Startup"
Pagoda
Won "2018 China High-Growth Chain Top 50"
"2018 National Unicorn"
Asset360, Nongfenqi, GalaxySpace
Won "Chuangye Heima TOP100"
Asset360, Yimi Dida
Won Deloitte China's "2018 China Rising Star"
Funding
Baibu Announced Completion of $100 Million Series C2 Round
Existing shareholder Source Code Capital continued to increase its stake
Source Code portfolio company Baibu, a textile B2B platform, announced the completion of a $100 million Series C2 round led by Tiger Global Management, with existing shareholders Source Code Capital, Chengwei Capital, Yunqi Capital, and Xiongniu Capital following on. Chongying Capital continued to serve as the exclusive financial advisor for this round.
As a company director, Xingchen Zhang of Source Code Capital stated that Baibu has established a commanding leading position in the textile B2B sector and is poised to capitalize on the future trillion-dollar trend in apparel supply chain and industrial internet. Source Code Capital, as Baibu's sole investor in its angel and pre-A rounds, has consistently believed in and supported the company through its most difficult times, increasing its investment in every subsequent round. Source Code Capital will continue to support Baibu in becoming a $10 billion company.
Xinchao Media Received Strategic Investment from Baidu
On November 14, Baidu announced a strategic investment in Source Code portfolio company Xinchao Media. This round totaled 2.1 billion RMB, led by Baidu. Following the establishment of their strategic partnership, Xinchao Media's extensive community offline smart terminals will be deeply integrated with Baidu's online data, providing enterprises and brands with more precise media traffic solutions. Xinchao Media has also formally become a new member of Baidu's Juping media alliance.
In April 2018, Xinchao Media signed strategic agreements with China Mobile, Huawei, and Xinda Jie'an to jointly build China's lifestyle IoT traffic laboratory. In August 2018, Xinchao Media released its Bee Intelligent Targeting System (BITS), which uses big data and AI technology to provide programmatic system products based on community elevator smart devices, enabling programmatic placement across Xinchao Media's smart terminals and offering advertisers one-stop intelligent marketing services. Currently, Xinchao Media has deployed in over 100 cities nationwide with nearly 700,000 elevator screens.
PanPay Raised Tens of Millions of RMB in Pre-A Round
Fintech company PanPay recently announced the completion of a tens of millions of RMB Pre-A round from renowned investor Source Code Capital. The funds will be used for core development of PanPay's digital banking products and building out its compliance infrastructure.
As a PanPay director, Tong Sun of Source Code Capital stated that the cross-border finance market is large, with numerous pain points yet to be addressed and significant room for optimization. PanPay possesses outstanding licensing capabilities and business strengths, and its innovative cross-border payment model is more competitive and closer to an end-state solution. As trade diversity and overseas financial demands increase, these advantages will eventually become apparent. Meanwhile, the CEO has many years of experience in cross-border finance with deep industry understanding, and Source Code is glad to support such entrepreneurs and companies.
Zhangshang Fucai Completed $8 Million Series A Round
Existing shareholder Source Code Capital continued to increase its stake
Source Code portfolio company Zhangshang Fucai, a self-operated construction materials B2B platform, has raised $8 million in Series A funding led by ZhenFund, with existing shareholders Source Code Capital and Buhuo Ventures continuing to increase their stakes. Previously, Zhangshang Fucai received angel and pre-A funding in the tens of millions from Source Code Capital and Buhuo Capital.
Wanrong Zhao of Source Code Capital stated: "As Zhangshang Fucai's angel round investor, Source Code Capital believes in the efficiency improvements the company brings to transform and replace traditional distribution channels. In this massive industry without dominant upstream brands, we believe the Zhangshang Fucai team can continue to integrate and transform distribution channels and upstream manufacturers."
Milestones
ByteDance
Co-founded Beijing Academy of Artificial Intelligence
On November 14, the Beijing AI Initiative was officially launched. As one of the earliest companies in China to apply AI technology to mobile internet scenarios, ByteDance will contribute its technical, data, and talent resources to deeply participate in this initiative, working with Beijing and industry chain partners to build an AI open service platform, promote algorithm open-sourcing, and jointly explore the development of a domestic intelligent ecosystem to serve technological innovation and industrial development.
Hongjiang Zhang, Chairman of BAAI, Dean of ByteDance Technology Strategy Research Institute, and Investment Partner at Source Code Capital, stated: "At the overall AI industry level, China has certain shortcomings in the three key drivers of AI development: data, algorithms, and computing power. Platform companies like ByteDance, with powerful computing capabilities and global data, should actively assume the social responsibility of technology enterprises in driving technological innovation, and contribute to Beijing's goal of building 'a globally competitive AI innovation hub and academic thought origin.'"
Douyin
Domestic Daily Active Users Surpassed 200 Million
On November 8, Fuping Zhang, ByteDance Party Secretary and Vice President, revealed at the Wuzhen World Internet Conference that as of October this year, Douyin's domestic daily active users (DAU) had surpassed 200 million, with monthly active users (MAU) exceeding 400 million, continuing to maintain rapid growth. Douyin's international version TikTok has achieved breakthroughs in many countries, with overall internationalization progressing smoothly and growing rapidly.
Fuping Zhang stated that the expansion of user scale sets higher requirements for the company to fulfill its social responsibilities. The company will continue to leverage its technical characteristics and platform advantages, using AI technology to empower targeted poverty alleviation and exploring distinctive poverty alleviation models for the mobile internet era.
Lianjia
Officially Released Comprehensive Quality Upgrade Plan
On November 14, Lianjia officially released its comprehensive quality upgrade plan, covering initiatives including the "30124" complaint response mechanism, eight nationwide peace-of-mind service guarantees, and achieving 51% bachelor's degree rate among agents.
Lianjia also released its new brand declaration "Lianjia for the People, Quality First," stating that customer service quality will be the focus of the company's next phase.
Lianjia will newly introduce the "Lianxiang Wuyou" customer service system, comprehensively upgrading complaint response, service guarantees, and transaction compensation. These upgrades include the "30124" complaint system: responding within 30 minutes of a customer complaint (triggering an SMS notification of receipt), providing a solution within 12 hours, and achieving over 90% complaint closure rate within 24 hours; nationwide implementation of eight peace-of-mind service guarantees; online rapid compensation; complaint transparency; and "Lianjia Open Day."
Ziroom
Asset Management Platform Fully Deployed Nationwide Whole-Building Apartment Business
On November 14, Ziroom's asset management platform national roadshow was held in Shenzhen. Ziroom's asset management platform announced it would open its product design, operations management, supply chain, and internet capabilities, offering three cooperation models to whole-building property holders: entrusted management, lease operation, and strategic partnership.
The entrusted management model differs from traditional franchising. To reduce upfront investment and ongoing operational costs for property holders, Ziroom does not charge one-time franchise fees or internet system usage fees. Instead, it shares risks with property holders during the operations service period, only charging a 5% management fee when occupancy exceeds 70%. The Ziroom App has already opened whole-building cooperation options on its interface.
Yunhang Xie, General Manager of Ziroom's asset management platform, also stated that Ziroom has successively launched products including Ziroom Luxury, Ziroom Apartments, Ziroom Inns, Ziroom City Lights, Ziroom Homestays, and Z-SPACE.
Chuxin
Pioneered Connected Features to Safeguard Food Safety
On November 19, commercial kitchen intelligence service provider Chuxin Technology pioneered the connected commercial dishwasher, which can reduce improper operations such as opening the lid mid-cycle during dishwashing, helping safeguard food quality and ensure diner safety.
Chuxin pioneered machine connectivity in the industry, enabling real-time data collection and cloud feedback. Chuxin includes data such as mid-cycle opening rates in monthly big data reports sent to merchants, helping them identify this non-standard operation, educate dishwashers on proper procedures, prevent improper operations like opening lids mid-cycle, and protect food quality.
This marks the first time the commercial dishwasher industry has achieved automatic detection of mid-cycle lid opening, symbolizing the initial success of cutting-edge technologies such as IoT, AI, and big data in the smart commercial kitchen sector.
Linlinyi
Announced RT-Mart China Logistics General Manager Liu Kunhua Joined
On November 7, Linlinyi officially announced that Liu Kunhua, RT-Mart China's logistics general manager, would join as co-founder in charge of building out the supply chain division. Mr. Liu previously oversaw RT-Mart's nationwide logistics distribution and supply chain control, with over ten years of supply chain experience, and was the youngest general manager in RT-Mart's China region during his tenure.
Leaving traditional large supermarket logistics for the community group buying industry, Liu Kunhua has his own reasoning: "This is an innovative field. Community group buying, as a细分 market in social e-commerce, has tremendous vitality and market space."
He believes that traditional e-commerce and logistics cannot see or touch actual "people," while community group buying can—not only solving people's daily needs, but even addressing their economic livelihoods. "This is something quite interesting and meaningful."
Moran AI
Released In-Car OS to Build Comprehensive Automotive Application Ecosystem
On November 13, after a year and a half of intensive R&D, Moran AI released its intelligent in-car OS—MorAuto OS. Starting from providing interactive decision engines, the company gradually integrated its single-point technical advantages into a genuine in-car ecosystem. Today, the in-car ecosystem has become an important part of Moran AI's commercial landscape.
What sets this vehicle system apart is its full voice conversational interaction, with VUI (Voice User Interface) at its core replacing traditional GUI (Graphical User Interface), with VUI and GUI mutually integrated. The multiple technologies it carries—including semantic understanding, dialogue systems, learning systems, knowledge and service platforms, speech recognition, language generation, noise reduction, voiceprint recognition, and command words—were all independently developed by the Moran AI team.
This means that Moran AI, just over two years since its founding, is no longer merely a technology provider, but has become a connected car solution supplier providing complete front-end conversational in-car OS and back-end conversational service platforms to OEMs for pre-installation.
WeiMai
Medical Health Service Open Platform Launched
On November 20, local one-stop medical health service platform WeiMai announced the launch of its "Medical Health Service Open Platform," freely opening core local medical service resources to partner enterprises. On the same day, it launched an online doctor consultation function in the deeply cooperative local application "Hangzhou Citizen Card," providing over 2 million Hangzhou Citizen Card users with online consultation and health management services from expert doctors at major provincial and municipal hospitals, meeting users' medical consultation needs.
Going forward, WeiMai will continue to export its medical health service capabilities, further empowering partners, expanding their service capabilities and scope, hoping to deliver WeiMai's services to more users in need through more channels, and striving to fulfill its corporate mission of "making medical health services no longer difficult."
Quotes
Zheng Wei, Founder & CEO of Cheduoduo:
Building a "Data Dictionary" for Used Car Dealers
First, use systems to cover the full business process. Second, automate machine decisions around customer experience. Third, use core technology to optimize key business processes. Used car dealers lag behind new car dealers in standardization and systematization, with missing data across the full business process. To address this, Cheduoduo built a "data dictionary" for used car dealers, recording all dealer business behaviors, inventory cycles, and historical data, generating dealer profiles, and forming dynamic, self-iterating channel management systems—achieving both refined dealer management and effective risk prevention.
Leo Liu, Founder & CEO of Knowbox:
Giving Every Child an AI Teacher
What are the benefits of applying AI technology to specific teaching scenarios? First, AI can deliver asynchronous instruction without needing to schedule time with a teacher. For AI, when we go to poverty alleviation and inclusive education, we don't need to send someone there—like water and electricity, wherever there's internet and power, AI can be made more accessible. Knowbox has a vision: based on the entire public school scenario, to give every child an AI teacher. This teacher doesn't replace public school teachers, but makes teachers' instruction more effective, giving every teacher an AI teaching assistant, slicing, fragmenting, and personalizing the entire AI teaching scenario. This is what Knowbox hopes to accomplish in the next two to three years.
Xiao Zhilong, Founder & CEO of Linlinyi:
Three Elements of Fresh Grocery E-commerce
There are three elements to fresh grocery e-commerce: first, fulfillment cost; second, timeliness; third, spoilage. These three have a variable/constant relationship. Traditional e-commerce hasn't found a good balance point. If you want speed, fulfillment costs rise somewhat—15 or 18 RMB per order. Frankly, in tier-one cities "fast" is a rigid demand, but in tier two through five cities "good and economical" is what matters. Community group buying achieves a balance here: next-day delivery with very high efficiency, fulfillment costs at one-quarter of traditional fresh grocery e-commerce, and it can reach下沉 users with broad audience appeal. It's not an optimization—it's completely a revolution.
Awards
Multiple Source Code Portfolio Companies
Won 36Kr's "2018 New Economy Kings"
On November 28, 36Kr released the "2018 New Economy Kings" list. Source Code Capital was named to 2018 China's Most Influential Venture Capital Institutions TOP 10. Source Code portfolio companies won approximately 20 major awards across nearly 10 track lists including new technology, automotive, enterprise services, real estate, consumption, entertainment, education, and the 2018 Retail Innovation TOP list.
Listed companies and products included: GalaxySpace, Moran AI, Toutiao, CHJ Automotive, ETCP, Yihang Intellitech, Edianzu, Ziroom, Huizhaofang, KE Holdings, Huishoubao, Meituan Waimai, Meili United (MOGU), Meituan Hotels, Yijiupi, Douyin, Huoshan Xiaoshipin, Xigua Shipin, ErGeng, Hai Feng Education, Qudian, Pagoda, Meituan, Xiaoxiang Shengxian, and Binguo Box.
(Click here to view list details)
ByteDance
Computer Vision Platform Project Won CCF Science and Technology Progress Excellence Award
On October 29, at the China National Computer Congress (CNCC), ByteDance's "On-Device Intelligent Computer Vision Algorithm Platform" project won the CCF (China Computer Federation) Science and Technology Progress Excellence Award. The "CCF Science and Technology Award," presented by the China Computer Federation during CNCC, is an authoritative industry technology award.
According to reports, this award-winning project uses core AI algorithms to drive computer vision applications, currently mainly applied across multiple ByteDance products including Douyin short video (TikTok), Xigua Video (Buzzvideo), Huoshan Xiaoshipin (Vigo Video), FaceU, and Qingyan Camera.
It is reported that based on achievements from this project, ByteDance is already promoting technology output, opening its mobile SDK Byted Effect to provide intelligent services in related fields for SMEs. ByteDance stated that the purpose of this move is to expand technology scale through open-sourcing the technology platform, integrating technology and applications.
KE Holdings
Won Deloitte China's 2018 China Technology Fast 50
On November 20, Deloitte China's Technology Fast 50 "China 50" awards ceremony was held in Beijing, simultaneously unveiling the China Rising Stars list, with multiple top-ranked companies achieving record overall revenue growth. KE Holdings was selected for "2018 China Technology Fast 50."
Knowbox
Won "2018 Most Commercially Valuable Startup"
On the morning of November 14, the 2018 Global Youth Entrepreneurs Conference, hosted by Bufan Business and FanZhuo Capital, was grandly convened. With the theme "Foreseeing the Future," and witnessed by over 500 outstanding investors and thousands of entrepreneurs, internet education company Knowbox, as a representative enterprise in the sector, won the "2018 Most Commercially Valuable Startup" award.
Knowbox is a well-known intelligent education technology company in China, entering daily teaching scenarios through digitalization and datafication of homework. It has already built a complete education ecosystem from in-school teaching to home tutoring using AI technology. Knowbox has entered 70,000 schools in over 400 cities across 31 provinces, autonomous regions, and municipalities nationwide, with over 30 million primary school teachers and students using Knowbox to assign and submit homework.
Pagoda
Won "2018 China High-Growth Chain Top 50"
"2018 National Unicorn"
On October 30, the 7th China Brand Chain Development Conference was held in Shenzhen, releasing expert lists for multiple awards including China Chain Brand Quality Top 50 and China Chain Brand Growth Potential Top 50. Pagoda, alongside well-known enterprises such as Huawei, Xiaomi, and Haidilao, made the lists, with Pagoda simultaneously winning three major awards: "China Chain Brand Quality Top 50," "China Chain Brand Growth Potential Top 50," and "China Chain Brand Influence Top 50."
On November 21, the 11th China High-Growth Chain Industry Summit concluded in Beijing, with Pagoda joining leading chain enterprises such as LAWSON, Xiaomi Home, and Haidilao on the "2018 China High-Growth Chain Top 50" list.
Asset360, Nongfenqi, GalaxySpace
Won "Chuangye Heima TOP100"
On November 23, the "11th Chuangye Heima Annual Conference," hosted by Chuangye Heima, was successfully held in Beijing, with the Chuangye Heima TOP100 list revealed on site. Asset360, Nongfenqi, and GalaxySpace made the strong showing.
Asset360, Yimi Dida
Won Deloitte China's "China Rising Star"
On November 20, Deloitte China's Technology Fast 50 "China 50" awards ceremony was held in Beijing, simultaneously unveiling the China Rising Stars list, with multiple top-ranked companies achieving record overall revenue growth. KE Holdings was selected for "2018 China Technology Fast 50," while Asset360 and Yimi Dida were selected for "China Rising Star," sharing this technology feast with over a hundred enterprises from multiple industries and cross-sector fields.
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Ma Hui Zhi · September | Meituan IPO on Hong Kong Exchanges, 4 Companies Completed Funding, 8 Won 12 Awards
Ma Hui Zhi · August | 4 Companies Completed Funding, 7 Strategic Upgrades, Code Brain Session 7 on WeChat Ecosystem and Mini Program User Acquisition
Ma Hui Zhi · July | 3 Companies Completed Funding, 5 Named 2018 China Pre-Unicorns
Ma Hui Zhi · June | Meituan Filed IPO Application, 3 Companies Completed Funding, Code Brain Session 6 at ByteDance
Ma Hui Zhi · March | 5 Companies Received Funding, Multiple Named to China Unicorn TOP100
Ma Hui Zhi · January | 6 Companies Completed Funding, 2 Named to Latest Global Unicorn List
