YESMRO.cn, an e-commerce platform for industrial products, recently completed a C-round of financing worth several million yuan. This round was led by Anchor Equity Partners, followed by Broad River Capital, Gaorong Capital, Qiming Venture Partners, Shunwei Capital, Matrix Partners and Gan Jiawei.
Since its establishment, YESMRO.cn has been committed to providing long-tail spot supply chain services for a large number of small enterprises. The company has rapidly penetrated and expanded into the Yangtze River Delta region while maintaining an annualized growth of more than 200% in sales. Further, the company has nearly doubled its gross profit margin in the past six months.
The production process of industrial automation is highly customized with the products that are highly non-standardized. Both the upstream parts and downstream customers are highly decentralized and production is often unplanned. The cycle from the factory receipt of an order to a delivery is short, and the procurement cycle is often compressed to mere weeks.
After several years of improvement, YESMRO.cn has established a fast turnover stocking system based on data and algorithms. With a stock turnover rate 5-10 times higher than the industry, it has achieved 1.1 million available Stock Keeping Units (SKU), 80% spot rate and 95% on-time delivery rate, creating a better purchasing experience for customers.
The company has also continued to make breakthroughs in the upstream portion of the production chain by building its own mechanical parts processing plant and demarcating each of its business interests into separate brands.
Zhu Hongtao, CEO of YESMRO.cn, realizes the opportunities the company has in front of itself, saying: “We hope to have the opportunity to provide better retail services of industrial products for small enterprises, which accounts for 90% of China’s manufacturing industry. We also hope to provide a large number of service-conscious upstream suppliers with digital channels and fulfillment capabilities for small businesses, and work together to make it easier, cheaper and more convenient for small enterprises to buy industrial products.”