Industrial IoT Solutions Provider Yuzhen IOT Technology Completes Tens of Millions of RMB in Pre-A Funding Led by Source Code Capital

源码资本·November 18, 2019·0·0

We provide industrial internet products and complete solutions for manufacturing enterprises, with the goal of eventually helping our customers manage every machine in their operations.

On November 18, Yuzhen IOT Technology (Shanghai) Co., Ltd, a domestic smart industrial one-stop service provider, completed a Pre-A funding round of tens of millions of RMB. The round was led by Source Code Capital, with existing investor Incapital participating, and Lieyun Capital serving as the exclusive financial advisor. The proceeds will be used primarily to accelerate product development and expand the R&D team.

Founded in November 2016, Yuzhen IOT Technology provides industrial internet products and complete solutions for manufacturing enterprises. Following its angel round last year, the company has strengthened its technical moat and built a product matrix spanning from edge-layer data collection to production management systems and equipment management systems. Going forward, it plans to further expand its application offerings and provide more comprehensive functionality.

Shinan Si, Founder & CEO, Yuzhen IOT Technology

Yangjie She of Source Code Capital commented: "The industrial internet market is vast and still in a blue-ocean phase. Yuzhen IOT Technology excels at understanding customer needs, delivering product functionality, and executing commercially. It has brought tangible improvements to clients' production and management efficiency, and we look forward to the company creating value for more industrial customers in the future."

Industrial internet is one of the essential infrastructure components for manufacturing industry upgrades. On this increasingly mature track, Yuzhen IOT Technology continues to refine its products and services based on its own understanding of the sector.

Since completing its angel round in November last year, Yuzhen IOT Technology has finished its technical breakthroughs. After its products received initial market validation, the company began building out its PaaS platform and developing and expanding applications. As its products have gradually become more modular, its R&D headcount has also grown, and it is now entering a phase of rapid development. Currently, its products have been delivered to hundreds of manufacturing enterprises, including many well-known industry players.

From the start, Yuzhen IOT Technology has embraced "machines dominating production, with humans assisting machines" as the endgame of this round of manufacturing upgrades. It has focused on machining scenarios in discrete manufacturing, with enabling 24/7 non-stop machine production as the ultimate goal of its product design.

To connect machines to Yuzhen IOT Technology's production management platform, the first challenge to solve was device compatibility during data collection. The "Yuzhen Communication Box" can now interface with 95% of CNC systems, robot controllers, PLCs, and industrial PCs on the market, with an average onboarding time of just 15 minutes per new device. Shinan Si, Founder and CEO of Yuzhen IOT Technology, noted: "While Yuzhen's IoT capabilities are strong, Yuzhen is actually a company that combines hardware and software — over 85% of Yuzhen IOT Technology's revenue comes from software and service subscriptions."

Beyond building its own PaaS and developing applications, Yuzhen IOT Technology has also brought in third-party enablers to jointly address diverse customer needs. The company's ultimate goal is to become one of the three essential systems for manufacturing customers — alongside ERP systems for enterprise resource planning, product design systems, and Yuzhen's Digital Lean Platform (DLP), which integrates production scheduling, manufacturing execution, and quality traceability.

Shinan Si, Founder and CEO of Yuzhen IOT Technology, said: "Only service providers that can deliver long-term value to customers will stand out from the competition. Some products may create short-term value, but simply and mechanically solving customers' immediate problems, or following step-by-step in addressing production pain points, cannot form core competitiveness. We want to help customers manage all of their machines."