Source Code Capital portfolio company "Miaoyou Technology" announces completion of RMB 50 million Pre-A funding round — Source Code Capital was sole angel-round investor

源码资本·February 28, 2020·0·0

Miaoyou Technology recently completed a RMB 50 million Pre-A funding round, with Oasis Capital as the lead investor. Source Code Capital, the angel-round investor, continued to increase its stake. **Source Code Capital was the sole investor in Miaoyou Technology's angel round.**

Miaoyou Technology recently completed a RMB 50 million Pre-A funding round led by Oasis Capital, with Source Code Capital — the company's sole angel investor — continuing to back the company. Source Code Capital was Miaoyou's only angel-round investor.

The new capital will go toward R&D for the company's cloud-factory products and technology, as well as building out its marketing team.

Founded in 2009, Miaoyou Technology provides smart-manufacturing solutions for the apparel industry. It started as a management-consulting and software-services firm and gradually developed a full suite of smart-manufacturing offerings, including a cloud-based supply-chain management system, a manufacturing execution system (MES), and a garment standard-time system (GST). As a software vendor, it has served more than 200 apparel producers.

She Yangjie, a board member representing Source Code Capital, said: "Flexible, quick-response apparel supply chains represent a massive structural opportunity. Brands have strong demand for high-quality, fast-turnaround, low-cost flexible garment production. Miaoyou's decade of accumulated technology, data, customer relationships, and industry know-how gives it a powerful edge. As the sole lead investor in the angel round, Source Code continues to support outstanding founding teams, and we look forward to the company creating even greater value for the industry."

Starting in 2019, Miaoyou began testing a new business line — the cloud factory — by aggregating production capacity across multiple apparel manufacturers. It takes orders from apparel brands, splits them among partner factories, and builds out a flexible, quick-response supply network. The fastest turnaround from design to delivery is seven days, compared with the industry top tier's 21 days.

Drawing on ten years of experience and data serving apparel producers, Miaoyou holds extensive information on garment categories, production processes, and factory capabilities. After consolidating orders, it assigns categories with high process overlap to specialized factories. Because garment production involves complex and varied operations, the company breaks down the manufacturing process into 118 standardized motions, tags each one, and uses algorithms to group and classify orders.

Founder and CEO Luo Jianjun noted that inside an apparel company, the journey from design and sampling through fabric and accessory sourcing to production and logistics involves nearly forty steps and coordination among roughly a dozen departments. In Miaoyou's track record, its full-suite solution has typically improved client efficiency by 20%–30%, with peak gains reaching 100%.

Luo Jianjun, Founder & CEO, Miaoyou Technology

Beyond production-floor efficiency, Miaoyou is also focused on streamlining the entire workflow. To support the cloud-factory business, the company is gradually shifting staff from its software division to develop a lightweight SaaS product for production facilities and e-commerce apparel brands. The goal is to optimize factories' existing production-scheduling systems and brands' internal supply-chain management, turning previously sequential workflows into parallel ones. Luo believes that with full implementation of the solution suite, Miaoyou could compress the production cycle from seven days down to five or six.

On the sales front, Miaoyou has historically relied on word-of-mouth. Luo argues that in B2B, the product is foundational — marketing-driven customer acquisition is meaningless without the capacity to serve those clients well. So the company will keep sharpening its product and technology to make its strengths even stronger, creating a Matthew effect. At the same time, it has brought in a vice president of marketing.