China-based IT services provider Neusoft’s Reach Automotive Technology subsidiary has received RMB650m ($101m) in a funding round led by investment firm CMG-SDIC Capital at a $1bn valuation.
Virtue Capital also took part in the round, which represents Neusoft Reach’s first external funding. CMG-SDIC Capital acquired a 9.3% stake in the company in return for $93m while Virtue Capital got a 0.78% share for $7.8m.
Formed in 2015 and also known as NeuSAR, Neusoft Reach is working on artificial intelligence-equipped automotive software products including advanced driver-assistance, automotive power transmission and vehicle thermal management systems.
The spinoff will use the cash to continue research and development activities for its software offering, venturing into innovative areas such as autonomous driving technology, improve its existing products and expand its presence in the auto market.
Neusoft Reach’s shareholders also include consumer electronics provider Alpine Electronics and employee stock ownership scheme Shenyang Furuichi Enterprise Management Centre. It will now prepare its financial statements separately from Neusoft.
