Redu Xingxuan, a leading SaaS provider for Douyin e-commerce, announced on Thursday its recent completion of an A+ round of financing totaling one hundred million yuan ($15.69 million). The lead investor is Meihua Venture Capital, while the co-investor is Zhiming Capital. The funds are mainly to be implemented for R&D, the promotion of SaaS products, incubation of OBM and the overseas market layout of TikTok.
Redu Xingxuan was established in October 2020. This SaaS (“Software as a Service”) platform serves live e-commerce merchants, connecting them with brands and content e-commerce platforms such as Douyin and Kuaishou. Within one year of its launch, the SaaS tool has served more than 10,000 merchants and more than 40,000 professionals.
Regarding the livestream hosts, Redu Xingxuan empowers mid-tier KOLs through big data and standard operating procedures, and offers commodity selections with the labels of “popular products” and “free samples.” Redu Xingxuan also provides brands with comprehensive operation services including marketing management SaaS tools, commodity recommendations through short videos, matrix and distribution of professionals, shooting of brand stores, and more.
In terms of commercialization, Redu Xingxuan’s SaaS tool provides free product selection service to professionals, and earns money by charging service fees to merchants in line with transactions. It is now developing a series of SaaS tools for merchants.
In 2020, Douyin e-commerce officially launched the tool “Selected Alliance” which connects merchants and professionals. Merchants can apply to use the function if they meet the requirements. Upon joining, the Selected Alliance commodity library will include their goods with an added commission. If professionals want to earn commission by selling goods, they can try the item first, then make videos or livestreams that recommend these commodities on the premise of a satisfied trial. The platform settles accounts with merchants or professionals on schedule.
However, the connection between merchants and talent requires far more than a simple tool. The founder of Redu Xingxuan considers the connection between merchants and professionals as a complex two-way communication and two-way selection. Douyin takes algorithms as its core, and its traffic is relatively scattered. It is difficult to form continuous sales and exposure only by relying on leading hosts and livestreaming of the brands.
Under the platform rule whereby Douyin e-commerce officially promotes “Selected Alliance,” the unique value of Redu Xingxuan as a supply chain SaaS service provider lies in its ability to connect hosts with merchants through tools and services, and fully coordinates the needs of both parties.