Gaocheng Capital announced its lead investment in Series C funding round of tens of millions of US dollars for QMAI Technology, a SaaS company focusing on public + private traffic operations and POS system for offline-store retailers, helping them upgrade to the NextGen operating model.
What is the NextGen operating model?
In recent years, with the advancement of technology, almost every industry has entered the stage of digital transformation, and the covid-19 has accelerated this process. The new generation of consumers, who are deeply influenced by the internet, have different consumption scenes and consumer psychology from the past. The offline store operation is undergoing tremendous changes as the relationship among customers/products/scenes evolve. The focus of offline stores is also shifting from business operations to improving user experience.
In the traditional model of store operations, merchants typically focused on the physical storefront as the main point of customer interaction. Products and services were managed through manual processes, and POS and membership management systems could have been more cohesive and efficient. Data silos were commonplace, hindering the store’s ability to extract meaningful insights from the collected customer profiles and transaction data. With the rapid advancement of technology, retailers must modernize their operations to stay competitive and deliver seamless experiences to meet ‘the evolving customer needs.
As consumption scenes now require higher levels of “online + offline” integration, choosing a NextGen operating model has become more crucial for store operations. Taking consumers operation as an example, new-generation consumers are more willing to pay for superior experiences, are more easily influenced by social media, and are more likely to engage in high-frequency consumption based on their preferences. In response, store operations need to become more intelligent.
How does QMAI empower the “NextGen operating model”?
As leader in the NextGen operating model, QMAI has deeply involved in store management for years, closely following the industry development trends in the digital era. Taking a consumer-centric perspective, QMAI continuously explores the new generation of user needs and transaction scenarios. QMAI helps retailers operate their stores and engage with customers across all dimensions: products, fulfillments, digital menus & ordering, payments, membership program etc.. The company also connects data and traffic from various channels, empowering brands to make informed business decisions and upgrade to the NextGen operating model, thus enabling sustainable business growth.
For instance, regarding user management, QMAI has been rethinking the membership system since the end of 2021 and has redefined its user center. Besides connecting user data across all channels, QMAI has developed complete user operation capabilities such as levels, tags, marketing, tasks, messages, and data. It aims to provide retailers with a more comprehensive, richer, and more intelligent user operation solution and offer complete and refined services for the NextGen operating model.
Which brands have taken the lead in the NextGen operating model?
Top brands often have a keener sense of the market trend. While some brands still use traditional business models, chain brands in segmented industries such as new-style tea drinks, fast food, baking, and braised food have already adopted the NextGen operating model.
QMAI has been committed to co-creating and achieving win-win situations with its clients, exploring new business models in the new-retail era, and providing consumers with services and experiences that are “more interesting, welcoming, and convenient.” QMAI defines the “NextGen operating model” by collaborating with these brands.
According to data, QMAI has provided business operation upgrade services to nearly 1,000 chain brands and over 300,000 stores nationwide, with a higher market share among top brands. QMAI’s clients include Auntea Jenny, LELECHA, YH Tang, Uncle Q Lemon Tea, Country Style Cooking, Yonghe King, Uncle Fast Food, Siblings Potato Noodle, Mr. Lee Beef Noodle King, Mr. Rice, Ziyan Foods, Juewei, Dim Sum Bureau of Momo, 85°C, and Addlove, spanning across tea drinks, Chinese fast food, braised food, and baking industries.
Throughout services to these brands, QMAI’s team has gained unanimous recognition from its clients by relying on the concept of the NextGen operating model, competitive product technology, and professional service.
The digital operations team of Auntea Jenny, a new-style tea drink brand with over 4,000 stores nationwide, stated that QMAI’s NextGen operating model provides them with leading concepts and strategies. Auntea Jenny expressed their gratitude for QMAI’s support in product technology, team service, and user operations. Auntea Jenny have confidence in QMAI’s continued development in exploring the NextGen operating model.
The braised food chain Ziyan Foods also praised the QMAI team, saying, “With comprehensive products, professional services, and a vibrant team, QMAI has earned our trust. During our cooperation, we have truly felt QMAI’s adherence to the principle of ‘customer first.’ Their team can provide timely, effective, comprehensive support in product development, feature iteration, online support, and follow-up maintenance.”
Country Style Cooking, a prominent Chinese fast-food brand, has expressed full appreciation for QMAI’s products and services, stating, “We can fully appreciate QMAI’s user-centric thinking in product design, which presents users with a systematic, holistic, and experiential product. Moreover, the QMAI R&D and implementation teams have a responsible attitude of ‘practicality,’ ‘entrepreneurship,’ and ‘hard work’ towards their work.”
QMAI Technology continues to lead the NextGen operating model.
According to QMAI Technology’s founder, Youyun Wang, this financing round will accelerate QMAI’s product development and iteration, closely following market changes to provide customers with more advanced store management solutions and support all aspects of their operational needs. In addition, QMAI will establish wholly-owned subsidiaries in more than 10 cities across the country, bringing QMAI closer to customers and providing more personalized active services, thus becoming the best partner for retailers to move towards the NextGen operating model in the digital era.
Regarding team building, Youyun Wang stated: “QMAI is recruiting for all positions, with a simple corporate culture and a friendly atmosphere, continuously welcoming excellent and like-minded friends to join us and create better products, helping stores upgrade to the NextGen operating model.” QMAI has more than 300 employees, of which ~70% are research and development personnel.
How does Gaocheng Capital view the “NextGen operating model”?
QMAI Technology has established itself as the leader in the market over the past three years with outstanding product performance and strong operational management capabilities. With a steady year-over-year growth rate of over 250%, and monthly transactions exceeding RMB 5 billion, QMAI’s products have reached nearly 500 million end customers.
Jing Hong, the founding partner of Gaocheng Capital, which led QMAI’s latest funding round, said that the firm has long been committed to investing in innovative retail technology and public + private traffic operations. She expressed optimism about the development potential of new retail, such as China’s new catering industry and QMAI’s technological innovation in the NextGen operating model. This latest investment in QMAI’s Series C funding round marks a significant move for Gaocheng Capital in this field. The firm will continue to create value for the company and support QMAI in improving its product matrix and organizational capabilities while empowering more offline retailers to achieve efficient digital operations.
