Youshupai, a Chinese technology start-up providing software as a service (SaaS) products for the textile industry, announced on Tuesday that it has raised millions of U.S. dollars in a series pre-A round of financing from venture capital firm Bertelsmann Asia Investments (BAI).
The investment came as hundreds of thousands of textile enterprises in China contribute more than half of the world’s fabric transactions. The total operating income of textile enterprises in China has reached RMB1.6 trillion (US$226.78 billion) in the first four months in 2019, according to statistics from China National Textile and Apparel Council.
But the industry still faces problems like a low informationization degree, outdated enterprise management modes and rising labor costs, which have barred the field from building an efficient industry chain with "high quality and fast delivery," said Youshupai co-founder Wu Qiyang.
Youshupai was founded in October 2017 in southeastern China’s Shaoxing city. The company aims to build "an information highway" for the textile industry, providing on-demand SaaS services for textile enterprises to help them improve digital transformation.
The company provides cloud-based enterprise collaboration and management tools including enterprise resource planning (ERP), office automation (OA), manufacturing execution systems (MES), and internet of things (IoT) data acquisition tools. Through these products and solutions, Youshupai helps textile enterprises improve the efficiency of warehousing, sales, financial statistics analysis, and employee management.
Proceeds of this round will be used for product development and marketing.