Xinsuan Tech Raises Tens of Millions of Yuan in Angel Round, Solely Invested by Sequoia China Seed Fund

36Kr has learned that industrial code reading and sensor maker Xinsuan Tech recently raised tens of millions of yuan in an angel round from the Sequoia China Seed Fund. The funds will be used for factory construction, product quality control and supply chain building.

Founded in 2019, Xinsuan Tech focuses on developing image processing algorithms and designing code reading products for 3C, new energy, automotive, warehousing, smart logistics, robotics, retail, payment and digital ID, offering general-purpose DPM industrial readers, high-speed high-performance industrial readers and cost-effective code reading modules. According to Grand View Research, the global barcode reader market was about USD 7 billion in 2021 and is expected to reach USD 11 billion by 2028, a CAGR of 6.7%; Asia-Pacific led the market in 2020 with a 40% share. However, the global industrial barcode reader market has long been held by major foreign brands including Keyence, Cognex and Datalogic, and raising the technical barrier of readers is a core task for every leading vision sensor company. In the view of Xinsuan Tech founder Zhang Suning, industrial readers used purely in Chinese manufacturing are still mostly imported brands. Starting from barcode readers and continuously expanding its product range, building on its vision algorithm and hardware design capabilities and on a domestic company's faster service than foreign brands, Xinsuan Tech still has the chance to become a domestic vision sensor company that can compete with the foreign leaders and provide better solutions for factory informatization. Xinsuan Tech has built several product lines, including general-purpose DPM readers, code reading modules, industrial handheld readers, payment modules and code reading chips. Its two launched products, the R270 and R275 series readers, both reach an internationally leading level and have been deployed on Company A's battery production line. The core advantage of Xinsuan Tech's readers is combining neural networks with traditional algorithms: a neural network trained on large amounts of data abstracts the texture features of 2D codes and barcodes, so in all kinds of complex scenes AI first roughly locates the code area, then traditional algorithms screen at high speed for precise localization, greatly improving decoding efficiency. In addition, Xinsuan Tech's algorithms ignore changes in image contrast and interference and locate the edges of 2D codes and barcodes at sub-pixel level, with a precision of up to 0.02 pixel. Overall, Xinsuan Tech's localization and decoding algorithms have three advantages: high precision, interference resistance and strong adaptability.

36Kr has learned that industrial code reading and sensor maker Xinsuan Tech recently raised tens of millions of yuan in an angel round from the Sequoia China Seed Fund. The funds will be used for factory construction, product quality control and supply chain building. Founded in 2019, Xinsuan Tech focuses on developing image processing algorithms and designing code reading products for 3C, new energy, automotive, warehousing, smart logistics, robotics, retail, payment and digital ID, offering general-purpose DPM industrial readers, high-speed high-performance industrial readers and cost-effective code reading modules. According to Grand View Research, the global barcode reader market was about USD 7 billion in 2021 and is expected to reach USD 11 billion by 2028, a CAGR of 6.7%; Asia-Pacific led the market in 2020 with a 40% share. However, the global industrial barcode reader market has long been held by major foreign brands including Keyence, Cognex and Datalogic, and raising the technical barrier of readers is a core task for every leading vision sensor company. In the view of Xinsuan Tech founder Zhang Suning, industrial readers used purely in Chinese manufacturing are still mostly imported brands. Starting from barcode readers and continuously expanding its product range, building on its vision algorithm and hardware design capabilities and on a domestic company's faster service than foreign brands, Xinsuan Tech still has the chance to become a domestic vision sensor company that can compete with the foreign leaders and provide better solutions for factory informatization. Xinsuan Tech has built several product lines, including general-purpose DPM readers, code reading modules, industrial handheld readers, payment modules and code reading chips. Its two launched products, the R270 and R275 series readers, both reach an internationally leading level and have been deployed on Company A's battery production line. The core advantage of Xinsuan Tech's readers is combining neural networks with traditional algorithms: a neural network trained on large amounts of data abstracts the texture features of 2D codes and barcodes, so in all kinds of complex scenes AI first roughly locates the code area, then traditional algorithms screen at high speed for precise localization, greatly improving decoding efficiency. In addition, Xinsuan Tech's algorithms ignore changes in image contrast and interference and locate the edges of 2D codes and barcodes at sub-pixel level, with a precision of up to 0.02 pixel. Overall, Xinsuan Tech's localization and decoding algorithms have three advantages: high precision, interference resistance and strong adaptability. In addition, Xinsuan Tech will develop dedicated image processing chips with built-in code reading to replace the purchased chips in its current products, lowering power consumption and cost, securing a stable supply and greatly improving product strength. After this round, Xinsuan Tech will set up factories in Nanjing and Ningbo, with two flexible production lines producing several products. More than a dozen sales agents, mainly in East China, South China and western China, have expressed interest in working with the company. On the team side, founder Zhang Suning previously led the AGV inertial navigation sensor and visual guidance sensor projects at Xinshi Electronics, and at the end of 2017 founded Changzhou Shentu Image Technology Co., Ltd., responsible for industrial image processing algorithm design and image-based reader algorithm design. CTO Zhou Yan is a chip expert who worked at Synopsys, Xiaomi, Vimicro, Nufront and other well-known chip companies, and has led design teams developing several mobile phone chips and very-large-scale application processor SoCs. The team's core members are all first-prize national winners in the camera group of the "NXP Cup" smart car competition and have worked on image processing algorithms for seven years.

Zhang Han, Partner at Sequoia China, said: "The new manufacturing revolution is a process of reshaping value along the industrial chain. Every link of the chain needs intelligent, digital upgrading, and every product needs to be identifiable and traceable. Industrial barcode readers and vision sensors play a vital role in industrial digital upgrading. We believe that, under Mr. Zhang's leadership and with its strong R&D and engineering capabilities, Xinsuan Tech will build a high-end independent domestic brand, quickly bring code reading and sensing equipment to scale in warehousing, logistics and industrial automation, and keep creating value for customers and partners."