Wuxi Xuelang Digital System Technology, the developer of Chinese industrial internet platform Xuelang Cloud, has raised nearly RMB100 million (US$14.51 million) in a series pre-A round of financing led by Mount Morning Capital, the early-stage venture capital platform of Chinese private equity firm China Broadband Capital (CBC).
SDIC FOF, a wholly-owned subsidiary of the Chinese state-owned investment holding firm State Development and Investment Corporation (SDIC), also participated in the round, according to a statement released on Tuesday.
Xuelang was founded in 2018 by Chinese internet powerhouse Alibaba Group and the local government in southeastern China’s Wuxi city. The company mainly develops an industrial data operating system that provides corporate clients with data intelligence services.
The one-year-old company has served nearly 50 medium and large-sized enterprises at home and abroad to help them digitize operation and management. Among them are Chinese energy-saving equipment manufacturer Shuangliang Group, industrial automation firm Wolong Group, and medical equipment producer Yuyue Group. The firm has posted tens of millions of yuan in revenue in 2018.
"The integration of 5G and industrial internet is the key to the digital transformation of the manufacturing industry. It is also the key segment of our investment in the industrial internet space," said Tian Suning, chairman of CBC. The new industrial internet platform created by Xuelang utilizes industrial data resources to provide a more flexible, real-time and dynamic data operating system, said Tian.
The company raised tens of millions of yuan in a seed round from Chinese venture capital firm Yinxingu Capital in 2018.