Source Code Capital Portfolio Company "Xinshengli" Announces Completion of Several Million USD Pre-A Round

源码资本·April 10, 2019·0·3

Focusing on Developing Children's Mathematical Thinking

Source Code Capital portfolio company Xinshengli, an early childhood education brand, recently raised several million dollars in a Pre-A round led by XVC. In June 2018, the company had previously raised several million RMB in an angel round from Source Code Capital.

Following that round, Xinshengli began pivoting from a content production company (CP) toward online education. Founder and CEO Shengqian Qi said the team has since narrowed its focus from science courses to math thinking for children aged 3–8. To support this broader business upgrade, the team has also brought on two new partners with experience in online education, e-commerce, and technology.

Xinshengli Founder & CEO Shengqian Qi

Since taking off in 2018, the math thinking training track has seen brand concentration comparable to children's language training. For instance, leading player Huohua Siwei recently closed a $40 million Series C.

Online math thinking training is still in a growth phase, with top brands having largely done the work of market education. Against that backdrop, early-stage teams that can differentiate on product planning still have a shot — analogous to how online 1-on-1 tutoring was followed by the rise of small-group classes, and now "AI teachers." Broadly speaking, Xinshengli is pursuing differentiation across two dimensions: course delivery and customer acquisition.

Image source: Xinshengli

For course delivery, Xinshengli opted for a mini-program-based format combining video with online interactive games, closer in approach to Jiliguala and Baicizhan. Children progress through courses by unlocking levels, while the team has already embedded data tracking within the games to lay groundwork for adaptive products later.

The choice of delivery format ultimately comes down to one question: Does math learning require real-time interaction?

Shengqian Qi believes that for math, post-class comprehension and practice matter more. So after recorded lessons deliver the knowledge input, hands-on practice with physical teaching aids and community Q&A can achieve similar results. The "productization" of educational services through recorded courses also lowers delivery costs for the team, creating differentiation in target audience and market positioning. The team has completed four levels so far, priced at 2,688 RMB per year.

Image source: Xinshengli

For customer acquisition, Xinshengli's strategy centers on "teaching aids." Typically, math thinking courses bundle online classes with a teaching aid kit, and Xinshengli follows this model. During its CP phase, the team developed its own video IP and accumulated experience in children's IP production. Building on these IPs, it independently developed teaching aids aligned with its curriculum.

Going forward, the team plans to spin off the teaching aids as a standalone product line sold across e-commerce channels, then funnel buyers through a conversion path of "teaching aids → 99 RMB trial class → annual subscription" — using product brand to capture mindshare, similar to how Lego has its own STEAM education product line. Unlike Lego, however, Xinshengli is also a newcomer in the educational toy market.

Shengqian Qi explained that the decision to make teaching aids an independent line stemmed not only from the gap in China's children's toy market, but primarily from the team's mature product development capabilities.

Beyond the new partner's e-commerce experience helping the teaching aid line gain traction quickly on digital channels, the team is also building out its own marketing team to improve conversion. Additionally, to better manage the large volume of users from e-commerce and boost sales productivity, Xinshengli has developed its own CRM and BI systems.