Quanxin Quanyi Secures $10M Series A+ Funding to Advance Full-Lifecycle Supply Chain Solutions for Pharmaceutical R&D

VCBeat has learned that Lab Direct China Limited, a leading digital supply chain platform in the life sciences industry, has completed a multi-million-dollar Series A+ financing round. The round was led by Kangjun Capital, with participation from Tailong Capital, Morimatsu Pharmaceutical, Xingbei Group, and existing investor Changling Capital. The proceeds will be used to develop Lab Direct’s proprietary brands and CMC production materials, as well as to enhance its digital platform infrastructure.

Founded in 2014, Lab Direct China Limited is dedicated to building a digital supply chain infrastructure platform, providing extensive and in-depth services to biomedical clusters. Its offerings cover the entire lifecycle of biopharmaceuticals, including R&D, pilot-scale trials, clinical trials, and commercial manufacturing, thereby enhancing supply chain efficiency. With strategic support from industry partners and investors, Lab Direct China Limited will possess stronger resource aggregation capabilities, accelerating the development of an ecosystem for integrated service and product portfolio supply.

Since its inception, Lab Direct China Limited has leveraged its pioneering SPM (Supply Procurement Management) integrated procurement and supply service model to provide biopharmaceutical companies with a one-stop, highly flexible, and resilient platform service solution for daily R&D materials, including reagents, consumables, instruments, and equipment. The company has accompanied many startups in their growth into well-known enterprises and has become a procurement integration service provider for numerous multinational corporations and domestic BioPharm companies.

With the booming development of the biopharmaceutical industry, Lab Direct China Limited has accompanied clients throughout the entire journey from small-scale trials to pilot studies and commercial production. The company has established CMC QC/PD laboratories for multiple enterprises and provided SPM procurement and supply integration services for CMC factory laboratories, earning widespread acclaim in the industry for its high-quality service and professional expertise.

Currently, Lab Direct has become a leading example of supply chain solutions in the industry. This achievement stems from eight years of building on SPM-integrated supply services, with a focus on addressing the pain points in the life sciences industry’s supply chain:

The procurement supply chain in the life sciences industry poses significant challenges for Biotech companies due to factors such as a wide variety of products, small order volumes, stringent timeliness requirements, and rigid compliance standards. To address these issues through specialized expertise, Lab Direct has developed a one-stop integrated supply chain platform (www.lab-direct.com), implementing a three-step strategy:“Do It Right, Do It Fast, Do It Strong”, building a supply chain expressway for biotech companies.

Do It Right—Providing One-Stop Solutions for Integrated SPM Supply Services.Streamline the hundreds of suppliers that customers originally had to manage entirely on their own into“10+1” Solution(10 core material suppliers + 1 one-stop integrated supplier), we can also continuously design customer delivery-centric procurement and supply solutions tailored to clients’ customized needs. On one hand, this meets enterprises’ rapid procurement demands and delivers an exceptional service experience, enabling procurement professionals to focus on higher-value tasks such as category management. On the other hand, it significantly boosts R&D personnel’s motivation and efficiency by freeing them from cumbersome supply chain-related responsibilities.

Speed Up—Digital Platforms Empower Supply Chains, Boosting Efficiency by Dozens of Times.The “speed” of Lab Direct China Limited is reflected in:

First, Direct Demand Connection, by front-loading price comparisons for commonly used brands and categories with customers, clients can directly search for products on the Lab Direct China Limited online platform and communicate their requirements in real time with its technical and procurement teams; this streamlines the process from R&D need identification to purchase order completion, reducing the turnaround time from 1–2 weeks to just 1–2 hours;

Second, empower order placement,Lab Direct China’s digital capabilities can help customers improve the efficiency of internal requirement confirmation and order approval processes. Customers can choose to use the customized approval workflows built into the Lab Direct China online platform to transition to paperless approvals; alternatively, they can seamlessly integrate their OA/ERP systems with the Lab Direct China online platform via punch-out connectivity, thereby reducing the multiple handling of order documents.

Third, ensure contract fulfillment,Lab Direct China Limited’s business mid-end ensures precise delivery, with progress updates sent directly to end users, reducing internal client communication steps by 90%. It also provides SaaS-enabled tools, such as digital catalogs, automated WMS management, and spending dashboards, to facilitate customer order management. By integrating online and offline scenarios through its client interface, Lab Direct China Limited empowers customer supply chains with efficiency dozens of times higher than that of traditional supply chains.

Strengthening — Building a Supply Chain Flywheel for the Life Science Industrial Park.Lab Direct China Limited is dedicated to building core supply chain fulfillment and delivery capabilities within the park, deploying a multi-tier warehousing system:National Tier-1 WarehouseAchieve delivery to all covered areas within 3 days,Campus Secondary WarehouseAchieve 3-hour delivery within the park,Customer Front Warehouse (i.e., VMI Service)Provide warehousing management for clients, ensure supply through multi-level buffer inventory, and enable rapid delivery via multi-warehouse collaboration.

The strength of Lab Direct China Limited has also attracted numerous invitations from life science industrial parks and incubators.Establish a Park Supply Chain Through Collaboration, becoming one of its key infrastructure platforms. It has currently established park-based supply chain platforms in multiple cities, including Shanghai, Beijing, Chengdu, Foshan, and Hangzhou.

Meanwhile,Lab Direct China Limited has also partnered with local government industrial parks to establish a “green channel” for the import and export of biomaterials and special items.", China's first one-stop Zhongguancun Life Science Joint Innovation Green Channel North Platform, with customs quarantine functional departments stationed on-site, has become a policy innovation base for pilot initiatives; this model has been replicated in many regions. Lab Direct China Limited is also operating the Chengdu Medical City R&D Supply Chain Service Platform (hereinafter referred to as "Chengdu Green Channel") as a third-party platform, implementing various nationwide first-of-their-kind policy innovations.

Lab Direct China Limited leverages its digital operations platform to integrate six core functional modules—sales, customer service, sourcing, technology, procurement, and logistics. Covering 80% of the innovative biotech clients in major life science industrial parks, it has gradually established a comprehensive service product matrix, consistently accompanying and empowering customers throughout their entire lifecycle growth.

After eight years of entrepreneurship, Lab Direct China Limited has completed its first development phase, which focused on achieving comprehensive coverage and deep penetration into biopharmaceutical enterprises through an integrated supply model, thereby building a “flexible” supply chain. The company has now entered its second development phase, focusing on shaping the “resilience” of its supply chain. To meet customers’ demand for cost-effective domestic alternatives, Lab Direct China Limited has launched its own brand, “Quanpin,” offering “international quality at domestic prices.” This brand has been widely adopted among core clients and is gradually expanding its product categories.

Lab Direct China Limited is also actively expanding into the GMP materials market in the field of Cell & Gene Therapy (CGT).In recent years, the industrialization of cell and gene therapies (CGT) has advanced rapidly, making the secure supply of Good Manufacturing Practice (GMP)-compliant materials increasingly critical. Since 2018, Lab Direct China Limited has deeply engaged in the CGT sector through its subsidiary, Manbo Biology, dedicated to introducing global innovative products and pioneering technologies. By securing exclusive distribution rights for brands from leading global manufacturers, the company has established a comprehensive framework for product introduction and technical support spanning all stages—from preclinical development and clinical trial applications to commercial manufacturing. After four years of diligent efforts, it has covered most major pharmaceutical companies in the CGT field, earned a strong reputation, and developed a competitive product portfolio.

Meanwhile, Lab Direct China Limited is actively exploring joint ventures and collaborative partnerships to rapidly enrich its product portfolio: in early 2022, it established a joint venture with the publicly listed company Morimatsu Pharmaceutical to manufacture CMC single-use consumables; in mid-2022, it pursued a “dual-brand” strategic cooperation pathway with Yinjia Biology, a developer and manufacturer of high-end proteases. Through diverse open collaboration strategies, the company leverages its supply chain ecosystem to cultivate a thriving “product orchard.”

The addition of new shareholders in this financing round also reflects the capital market’s recognition of Lab Direct China Limited and its strong confidence in the company’s sustained growth.

Su Yuexing, Partner at Kangjun Capital, the lead investor in this round, stated: “In recent years, Chinese innovative drug R&D enterprises have risen rapidly. The timeliness of the supply chain has, to some extent, impacted the progress of biopharmaceutical companies’ R&D pipelines, with domestic supply chain instability becoming increasingly prominent under the disruption of the pandemic. Lab Direct China Limited has always adhered to the core principle that resolving procurement challenges in the biopharmaceutical sector hinges on precise demand matching and digitalized supply chain management. The company has gradually formed a product portfolio that empowers customers throughout their entire lifecycle. In the future, it will continue to collaborate closely with outstanding R&D and manufacturing enterprises through open, cooperative innovation, striving to create ‘high-quality Chinese reagents and world-class consumables,’ while actively pursuing high-tech original innovation and achieving domestic substitution for GMP materials subject to ‘chokepoint’ constraints. Kangjun Capital is honored to participate in this financing round. We look forward to working together with Lab Direct China Limited to provide efficient supply chain services for Chinese biopharmaceutical enterprises.”

In 2018, Lab Direct China Limited completed a tens-of-millions-of-US-dollars Series A financing round led by Changling Capital. After four years of close communication, the existing shareholder, Changling Capital, has once again increased its investment, demonstrating that it has established a long-term partnership with Lab Direct China Limited and maintains full trust in the company.

Jiang Xiaodong, Managing Partner at Changling Capital, stated that the contradiction between inefficient supply chain management and the rapidly evolving pharmaceutical R&D industry has become increasingly pronounced. Coupled with concerns over supply chain security and stability, China’s pharmaceutical sector requires a digitalized, one-stop supply chain solution to accelerate domestic R&D efforts. Yang Ying, Founder of Lab Direct China Limited, has translated her extensive experience into profound industry insights. Leveraging advanced service concepts, forward-looking strategic planning, and abundant industry resources, she has led Lab Direct China Limited to grow alongside its pharmaceutical R&D clients, establishing the company as a leader in this field. Moving forward, Changling Capital will continue to support Lab Direct China Limited through financial backing, industry resource empowerment, and strategic development planning. This partnership aims to enable Chinese enterprises to take control of their supply chains, serve customers efficiently, and provide the industry with high-efficiency, secure, and stable solutions.

Changling Capital was founded in 2016 and currently manages over RMB 6 billion in dual-currency funds. Over the past six years, it has cumulatively invested in more than 60 innovative startups in the healthcare and aging sectors. In each of the last two years, Changling Capital has deployed over RMB 1 billion annually across its three core focus areas: new healthcare services, new medical technologies, and innovative aging solutions. Its investments range from early-stage deals of RMB 10 million to growth-stage investments exceeding RMB 200 million per transaction.

Kangjun Capital was established in 2019. Leveraging the industrial background of Pharmaron (Stock Codes: 300759.SZ/3759.HK), it focuses on equity investments in the biopharmaceutical sector. The Kangjun Capital team conducts global investments by applying a unique industry perspective and drawing upon extensive experience in industry, scientific research, management, and capital markets. It primarily targets globally leading biopharmaceutical R&D services and technology innovation platforms, biotechnology companies, and medical device companies. Kangjun Capital is committed to becoming a bridge linking life sciences, the health industry, and capital, as well as a trusted long-term partner.