Source Code Capital | "Xijie Fried Skewers" Announces 75 Million Yuan Series A+ Funding Round, Source Code Capital Co-Led Series A Round

#MaKe Source Code Capital and MaHui Member News

Recently, snack chain brand "Sister Xi's Fried Skewers" announced the completion of a 75 million yuan Series A+ round, with Jiayu Capital as the sole investor and Mingyue Capital serving as financial advisor. This marks the brand's second financing round completed within six months. Last October, Sister Xi's Fried Skewers secured its Series A round jointly led by Source Code Capital and Xingnahe Capital. To date, the company has raised over 300 million yuan in total funding, establishing itself as one of the fastest-growing brands in the snack chain industry.

This growth stems primarily from its distinctive takeout-plus-delivery business model and robust supply chain system. From day one, Sister Xi's Fried Skewers has invested substantial resources in building out its supply chain infrastructure — the core engine that has powered its rapid expansion from 1 to 1,876 stores in just three years.

The new funding will go toward supply chain upgrades, digital system development, operations platform construction, and building a high-caliber team. By rapidly strengthening both its soft and hard capabilities, the company aims to solidify its competitive moat and continue leading the high-quality development of the snack chain sector.

China is a massive food and beverage market, reaching 4.7 trillion yuan in 2021. Within this, the snack segment alone hit the trillion-yuan mark — five times the size of the new-style tea beverage market — reflecting enormous consumer demand and promising growth prospects. As younger consumers have gained purchasing power, street food shops have entered a golden era, and fried skewers, as one of the signature street food categories, have moved into a phase of rapid development and brand-building.

A ten-thousand-store chain must achieve a standardized, replicable profit model. This requires three key characteristics: complex back-end operations, simple front-end execution, and low investment with high margins. Sister Xi's Fried Skewers exemplifies this category and brand archetype.

Sister Xi's Fried Skewers has reengineered the traditional fried skewer industry through consumer insights and analysis of food sector pain points: focusing on compact 20-30 square meter stores centered on takeout and delivery to reduce per-store investment; replacing the "per-skewer" ordering model with portion-based sales to simplify operations and improve margins; introducing a "nine-grid fryer" to ensure product quality and speed up service; and building out a full supply chain with direct-to-store delivery, enabling these small shops to rapidly output standardized products.

The company has now established a highly standardized, digitized supply chain system with nine regional distribution centers covering 29 provincial-level administrative regions and 304 cities. As store count grows, the radiating capacity of these hubs will increase significantly, allowing Sister Xi's to leverage economies of scale for cost control.

To help franchisees operate more effectively, Sister Xi's Fried Skewers has invested heavily in digital operations, achieving online connectivity for customers, transactions, and staff. Stores use QR code ordering for customer connectivity, with real-time visibility into inventory data to maintain safe stock levels.

From the outset, founder and CEO Kuankuan Wang set "a thousand cities, ten thousand stores" as Sister Xi's north star. Following two funding rounds, the company is accelerating its pace: this year it will continue investing in supply chain and franchise development, having already established a sub-warehouse in Changsha to expand coverage across the Southwest region. The goal is to add 2,000 newly signed stores on top of the existing 1,876, with tier-one city locations comprising over 60% of the network.

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