Source Code Capital Portfolio Company Blokees Raises 600 Million Yuan in Series B, Existing Investor Source Code Capital Continues to Increase Stake

源码资本·May 14, 2021·0·6

Build a global children's brand born from China.

On May 14, Blokees officially announced the completion of a 600 million RMB Series B funding round, jointly led by Yunfeng Capital and Legend Capital, with Gaorong Ventures, Source Code Capital, and select existing shareholders participating. Source Code Capital, an existing shareholder, was a co-lead investor in Blokees's Series A round.

The proceeds will primarily fund upgrades across the "building block +" industry's R&D, production, operations, and marketing — further strengthening the company's brand moat, sharpening its competitive edge, and capitalizing on the rise of China's new consumer generation to deliver more original, valuable, and beloved Chinese-made products.

An Original Building Block Brand Representing "Created in China"

Founded in 2014, Blokees formally committed in 2015 to building an industrial ecosystem centered on building blocks as a connector. Through sustained investment, the company developed a truly original building block system that has won broad recognition from both industry and consumers.

As a breakout player in the domestic market, Blokees has delivered striking growth in recent years — outpacing the entire industry in growth rate for three consecutive years. Its 2020 hit product, the building block bucket, sold over 100,000 units on Tmall alone and ranked first in the interlocking building block category during Tmall's Singles' Day event. In Q1 2021, it topped Toys "R" Us's single-item sales chart, surpassing LEGO, and also led domestic building block sales at Kidswant. The brand has been designated as the building block of choice for early childhood development at over 1,000 kindergartens in Beijing, Shanghai, and other cities nationwide.

The Blokees Team series' combined battle robot became a top-selling single item at Toys "R" Us in Q1 2021

R&D-Driven Innovation for Age-Appropriate, Professional Building Block Products

Since its founding, Blokees has put consumer insights at the center of its strategy, insisting on innovation to create an original building block brand tailored to children's developmental needs. Blokees has partnered with Harvard University, Zhejiang University, and other leading institutions at home and abroad to establish China's first child development lab. Grounded in key developmental milestones for children, the company has created a building block system and product line defined by "easy to build, interactive, and more fun for kids."

Blokees's Key Developmental Milestones framework forms the foundation of its unique product and education R&D system

To date, Blokees has launched 15 series comprising over 100 individual SKUs, including the Early Elf series designed for children aged 6 months to 3 years, the Magic Blocks and Blokees Team series built around the proprietary Blokees Squad IP, and the Creative Master series centered on the building block bucket format. By year-end, approximately 90 new products are slated for release, alongside a strategic launch of new tech-interactive and trend-focused series to further strengthen competitiveness across differentiated demographics and age segments.

A commitment to R&D innovation has become one of Blokees's defining characteristics. The company's product development and education R&D teams now exceed 100 people. Every Blokees product undergoes 229 specialized processes from concept to market launch, with hands-on testing by 1,000 children, ensuring that building block pieces,造型组合, and themed play patterns align with children's unique developmental needs. Meanwhile, Blokees rigorously selects high-quality materials and processing techniques, with every block passing triple certification by EU CE, EU RoHS, and Swiss SGS — guaranteeing safety and health to the highest standards. This solid foundation in production and research has underpinned Blokees's market and industry leadership. As a representative Chinese original brand, Blokees has repeatedly won major international awards, including the Brain Toys award from the United States' "Strongest Brain" program, the G-mark design award (one of the world's four top design prizes), and the CES Innovation Award, known as the "Nobel Prize of the tech world."

Embracing the New Consumer Market, Staying the Brand Course, and Expanding the "Building Block +" Vision

As Gen Alpha mothers emerge, the consumer market is undergoing transformation. By discerning the preferences, consumption habits, and parenting philosophies of this new generation of parents, Blokees has leveraged its differentiated brand advantages to expand its audience, accelerate product development, and complete its product matrix. Centered on building blocks, the company has mapped out a comprehensive industrial vision spanning T (Toy) + A (Animation) + G (Game) + E (Education), connecting the essential stages and scenarios of children's growth.

Additionally, the group's Blokees Animation, Blokees Education, and Bubu Leyu units will continue to use building blocks as a trigger point and primary vehicle, enriching the meaning and scope of "building block +": its animated IP series has accumulated 7 seasons with 6.5 billion views across platforms, attracting nearly a million highly engaged young fans and deepening brand recall and affinity; Bubu Leyu delivers edutainment content through premium digital offerings, using "internet +" technologies to make learning joyful; Blokees Education provides quality AI literacy education solutions through diversified scenario-based building block teaching, reaching top elementary schools, kindergartens, and early education institutions across China and globally, fully empowering education.

On Blokees's path forward after the Series B round, founder and CEO Weisong Zhu said: "From founding to today, Blokees has rapidly iterated and formally entered a new phase. Going forward, we will dig deeper into the opportunities, challenges, and demands of the new consumer generation, continue investing in new R&D technologies, expand our marketing vision, and explore innovative channel strategies. Whether in market and industry insights, product innovation, supply chain optimization, channel expansion, or data-driven operations, Blokees will keep pushing to break through to the next level."