Source Code Capital portfolio company "Ruigu Mall" announces completion of hundreds of millions of RMB in Series C2 funding; existing shareholder Source Code Capital continues to increase its stake

源码资本·September 18, 2020·0·0

Just eight months after closing its Series C1 round, Ruigu Mall — a leading domestic industrial supply chain platform — announced the completion of a Series C2 round worth several hundred million RMB. Existing shareholders Source Code Capital, Eastern Bell Capital, CDH Investments, and Chengwei Capital all doubled down, with Chongying Capital serving as the exclusive financial advisor for this round. **Source Code Capital was the sole investor in Ruigu Mall's Series A round and has continued to support its Series A+ and Series B financings.**

Just eight months after closing its Series C1 round, RuiGu Mall — a leading domestic industrial supply chain platform — announced the completion of a Series C2 round worth several hundred million RMB. Existing shareholders Source Code Capital, Eastern Bell Capital, CDH Investments, and Chengwei Capital all participated, with Chongying Capital serving as the exclusive financial advisor for this round. Source Code Capital was the sole investor in RuiGu's Series A and has continued to support its A+ and B rounds.

2020 was an extraordinary year. The sudden pandemic brought both opportunities and challenges to China's supply chain innovators. Rather than being impacted by the outbreak, RuiGu Mall accelerated its growth and path to profitability, driven by solid supply chain fundamentals and sharp customer acquisition capabilities. In the crowded industrial goods sector, RuiGu's business model has demonstrated strong economies of scale and growth momentum, making it a force to be reckoned with.

Looking back at its development, RuiGu took a different approach from most competitors who started broad and comprehensive. Instead, it chose to focus deeply on the power tools and electromechanical equipment segment as its entry point, carving out a distinctive path in this niche. RuiGu's model is built on standardized demand from similar customer profiles, customer acquisition through advantaged core product lines, and transaction systems tailored to the characteristics of its focus categories — enabling rapid closed-loop supply chain capabilities in a细分 market. Because customer needs are homogeneous, the supply chain system can be replicated more quickly. Because product categories are focused, the same scale helps upstream manufacturers distribute products more effectively and unlock greater channel value, creating the growth momentum that drives RuiGu forward.

Moreover, as its business model has evolved, RuiGu has built what is now the "fastest highway" in the entire industrial goods sector. First, it is a highway for rapid delivery of products and services — as traffic and scale have grown, RuiGu now boasts the industry's optimal infrastructure structure. Second, it is a highway for rapid capital turnover. With the convergence of commercial flows, RuiGu's platform attributes have become increasingly apparent. Within the RuiGu system, not only have lengthy transaction chains been shortened, but the distribution system has also improved through centralized, efficient operations. In this process, capital efficiency has increased for upstream and downstream players across the industry, and RuiGu's own capital efficiency far exceeds that of its peers.

Gao Yang, founder and CEO of RuiGu Mall, said: "Compared with European and American industrial supply chain giants, whether we're talking about traditional Chinese trading companies, supply enterprises, or innovative supply chain platforms, most players are still stuck at the level of 'selling and moving goods.' RuiGu believes that in a sizable存量 market, innovative companies need to reshape industry infrastructure and help upstream and downstream players fundamentally improve efficiency. Over the past few years, RuiGu has focused on partnering with quality domestic industrial manufacturers, bringing truly market-aligned优质 products to market with precision. In the next phase, building on the closed-loop product supply chain we've already established, RuiGu will further empower small and medium-sized B-level sub-terminal service providers on the service side — giving these businesses, which already have certain customer relationships and professional expertise, better tools, products, and professional support to make their operations 'simpler and more profitable.' RuiGu believes this market doesn't need ordinary distribution channels; only by continuously delivering deeper, more foundational value can we ultimately earn the recognition of upstream and downstream industry players."

According to available information, RuiGu Mall's business has grown rapidly. As of September 2020, it had covered nearly 100,000 sub-terminal customers across dozens of cities, delivering hundreds of thousands of electromechanical tools daily, supporting Chinese manufacturing in capturing global economic high ground in the post-pandemic era.

As a RuiGu board member, Xingshi Wang of Source Code Capital said: "China's industrial goods market is undergoing an upgrade in product standardization and channel digitalization. Source Code Capital has been continuously increasing its investment in RuiGu since leading the Series A in 2016, accompanying and witnessing the company's growth from its East China origins through supply chain reconstruction and upgrading, deep coverage of sub-terminal customers, and批量 replication across national industrial zones. We believe RuiGu has entered the fast lane of development and is becoming a leading industrial goods B2B trading platform in China."