Source Code Capital portfolio company "moody" announced the completion of a Series C funding round exceeding 1 billion RMB, with existing shareholder Source Code Capital continuing to increase its stake.

源码资本·November 1, 2021·0·1

Strengthen research teams and R&D centers, and accelerate international expansion.

On November 1, 2021, Weimu (Shanghai) Technology Co., Ltd., parent company of moody — the top-selling colored contact lens brand online — announced the completion of a Series C funding round exceeding RMB 1 billion. The round was co-led by 5Y Capital and KKR, with existing investor Source Code Capital among the follow-on investors. The proceeds will be used for product R&D and upgrades, further strengthening the scientific research team and R&D center to solidify moody's core competitiveness and leadership position in China's colored contact lens industry, and to accelerate the company's international expansion. Notably, existing investor Source Code Capital has backed the company since its Series A, and continued to participate in its Series B, B+, and C rounds.

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Founded in 2019, moody has distinguished itself among tens of thousands of colored contact lens brands through its high-quality, meticulously designed, short-cycle disposable products, becoming a leading brand in China's colored contact lens space that combines aesthetic appeal with substance. In 2020 alone, moody's sales surpassed RMB 200 million, with transaction volume projected to exceed RMB 800 million this year.

"Facing the rapid evolution of China's colored contact lens industry, moody will remain committed to its founding principle of quality and its bold, innovative spirit, using Chinese technology, aesthetics, and creativity to bring better products to the world," said Ci Ran, moody's founder, when discussing the company's future. "The era of 'instant peak popularity' is drawing to a close, and the new consumer goods industry will inevitably become more stable, mature, and systematic. We have always believed that only by comprehensively elevating our product and brand capabilities can moody maintain its shine in a market environment that will only become more selective over time."

Doubling Down on Building Comprehensive Product and Brand Capabilities

According to reports, moody will continue to focus on supply chain development, R&D and design, team building, and brand upgrading, carving out core competitive advantages in the colored contact lens industry through its distinctive differentiated approach. The company has already invested RMB 300 million in material and production line R&D, with plans to invest over RMB 500 million more going forward.

moody's dedicated production line

During this period of explosive market growth, supply chain positioning has become critical for colored contact lens brands. On the supply chain front, moody has progressed from deep involvement in OEM production lines, to joint R&D, to developing the ability to direct supply chain operations, with the ultimate goal of owning its own supply chain system — exercising rigorous quality control at every step. Currently, moody has established deep partnerships with Asia's only fully automated world-class factory, creating genuine technological barriers within the industry.

The unique nature of colored contact lens products means consumers have heightened demands for safety, functionality, and comfort. moody has invested heavily in product R&D, not only devoting considerable effort to studying materials used in existing soft contact lens products, but also establishing a hydrogel materials laboratory in Taiwan to build independent R&D and material iteration capabilities, all in pursuit of more comfortable and safer products. To create more playful, vibrant premium products, moody also maintains long-term deep partnerships with top-tier lens design teams for collaborative R&D and design, staying attuned to domestic and international trends.

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High-quality product R&D and design requires a strong team. moody's core team includes professionals from internationally renowned optics companies such as Johnson & Johnson, CooperVision, and Bausch + Lomb, as well as versatile talent from leading consumer goods and internet companies including Procter & Gamble, L'Oréal, Alibaba, and ByteDance. To support its global expansion, moody is actively growing its team. This year, the company launched a management trainee program, attracting numerous young graduates from top domestic institutions (Tsinghua, Peking, Fudan, and Jiao Tong universities) and Ivy League schools worldwide.

Beyond this, moody is committed to deepening product education and consumer guidance, building a more professional and scientifically grounded brand image. The company is actively expanding partnerships with leading domestic and international ophthalmology experts, top materials science specialists, and design teams. It has collaborated with expert groups to establish the moody Invisible Comfort Eye Research Institute, and partnered with Taobao Education, chief physicians from China's top-tier ophthalmology hospitals, and celebrity makeup artists to launch educational courses aimed at providing young people with professional, reliable guidance on selecting and using colored contact lens products.

During the 2020 Tmall Global Double 11 shopping festival, colored contact lens product transaction volume grew by triple digits year-over-year. According to data from the Tmall Contact Lens Industry Consumer Insights White Paper, colored contact lenses grew 83% year-over-year in the first half of 2021. The colored contact lens market still has significant room for explosive growth.

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Yungang Huang, Partner at Source Code Capital, commented: "As beauty penetration rapidly increases, colored contact lenses have become another essential tool for Gen Z young women to express their individuality, and are quickly becoming mainstream. moody identified and seized the trends of online distribution, short-cycle disposables, and brand-building in the colored contact lens industry, consistently dedicating itself to delivering quality products and strong user experiences, which has earned the company a leading position in the industry. Beyond its ongoing investment in R&D and technology, the company now has greater resources and foundation to invest in talent and organizational development, enabling more sustainable development of even better products."