China industrial internet platform Xuelangyun raises $44m

The company received seed funding from Yinxinggu Capital in 2018, according to AVCJ Research. A pre-Series A of CNY 100m followed in 2019 featuring Mount Morning Capital and SDIC Venture Capital. Matrix Partners China then led a Series A of the same size in 2020.

The digitalisation of manufacturing in China has been difficult because of a lack of required interdisciplinary knowledge. With a core team that spun out from Alibaba Cloud in 2018, Xuelangyun claims to have this expertise.

The company provides an end-to-end industrial software solution, from design to manufacturing to maintenance. The new capital will go towards R&D into core infrastructure, including collaborations with universities and industry partners.

Xuelangyun has undertaken a number of national-level scientific research projects. It also serves more than 100 state-owned enterprises (SOEs) and independent manufacturers, including China Aerospace Science & Industry Corporation, China Railway Engineering Equipment Group, and Weichai Power.

It was among the first batch of industrial internet platforms to pass performance tests run by the China Academy of Information & Communications Technology.

While industrial digitalisation represents a significant target for software developers in China, it is difficult to make headway with standardised products. Large corporates typically demand customised solutions, which tend to deliver lower margins than classic standardised software-as-a-service (SaaS) products.

Fanzhuo Capital served as the exclusive financial advisor for Xuelangyan's funding round.

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• Topics
• Greater China
• Expansion
• Technology
• Industrials
• China
• China Structural Reform Fund