Source Code Capital-backed MRO industrial e-commerce platform Ruigu raises nearly 300 million yuan in Series C1 funding, with Source Code Capital as sole investor in Series A

源码资本·September 11, 2019·0·0

As of September 2019, Ruigu had provided timely and efficient MRO supply chain services to more than 50,000 industry customers.

MRO industrial e-commerce platform Ruigu has announced the completion of a nearly RMB 300 million Series C1 funding round. The round was co-led by Eastern Bell Capital and CDH Investments. Chongying Capital served as the exclusive financial advisor.

Since its founding, Ruigu has received backing from multiple leading funds, including Source Code Capital, Chengwei Capital, Zhenghan Capital, and this round's co-leads Eastern Bell Capital and CDH Investments.

Globally, the industrial products sector has produced several publicly listed companies valued at over $10 billion after nearly a century of development. In China, the sector is supported by a secondary industry worth RMB 36 trillion, with a circulation market valued in the trillions. At the same time, industrial upgrading in this sector remains in its early stages — the traditional distribution chain is fragmented, lengthy, and inefficient, creating opportunities for channel consolidation. Companies that can capture this opportunity will have enormous room for growth.

Since its establishment, Ruigu's core team has focused on improving the distribution efficiency of MRO industrial products. As of September 2019, Ruigu was providing timely and efficient MRO supply chain services to over 50,000 industry customers, with its client base continuing to expand.

Gao Yang, founder and CEO of Ruigu, said: "The core foundation of a supply chain platform lies in improving the circulation efficiency of traditional industrial chains — otherwise it cannot create real value for upstream and downstream players. MRO categories are complex, with numerous and scattered SKUs, and traditional channels suffer from unstable product quality and fulfillment timeliness. Ruigu offers a supply chain service with better cost performance, higher efficiency, and superior service. Within Ruigu's partnership ecosystem, partners experience faster inventory turnover, higher capital utilization efficiency, and ultimately stronger overall business competitiveness. Ruigu hopes to empower more upstream and downstream industry players in the future and further contribute to the upgrading of China's MRO industry."

Ruigu Founder & CEO Gao Yang

Xingshi Wang, board member from Source Code Capital, said: "Ruigu is a leading B2B platform company in the MRO track and a representative investment for Source Code Capital in industrial internet. Source Code Capital has supported Ruigu since its Series A, continuously backing its innovation in the MRO sector, optimization of circulation efficiency, and service to sub-terminal stores. Under the major trends of tools improving labor efficiency and the rise of domestic MRO brands, Ruigu has achieved substantial development and has become a B2B platform leading in coverage and penetration."

Zhu Yingchun, partner at Eastern Bell Capital, said: "New technology infrastructure and a new generation of entrepreneurs are driving the rapid consolidation of China's industrial products distribution. With such a massive market, there will undoubtedly be a series of investment opportunities — not only one-stop platform opportunities, but also opportunities for vertical deep integration in areas such as industrial components, laboratory supplies, fasteners, electronic components, and hardware and electrical tools. Ruigu is an excellent player in the industrial products distribution space. CEO Gao's team quality and potential demonstrate a high ceiling rarely seen in entrepreneurial teams. Eastern Bell Capital is honored to participate in this investment and will spare no effort in accompanying and supporting the company's growth."

Zhang Haifeng, senior partner at CDH Investments Innovation and Growth Fund, said: "Ruigu is an important investment for CDH after systematically reviewing more than ten sub-sectors in the supply chain space and tracking company development over the long term. The company has excellent executives in product, operations, sales, and technology, and has proven the team's strong learning capabilities and bold execution through actual performance. Meanwhile, the Ruigu team continues to iterate and expand its capabilities. We highly recognize Ruigu's business model and corporate strategy, and are willing to support the company's long-term development amid the wave of industrial internet transformation, helping the team contribute to cost reduction and efficiency improvement in China's MRO industry."