NeuSAR, a unit of the Chinese software major Neusoft Corporation, announced on Monday that it has closed its maiden round of financing, raising 650 million yuan ($101 million).
State-backed CMG-SDIC Capital led the round with participation from automotive industry-focused Virtue Capital.
CMG-SDIC Capital picked up a 9.3% stake in NeuSAR for an investment of 600 million yuan ($93 million), while Virtue Capital infused 50 million yuan ($7.8 million) for a 0.78% equity interest.
Armed with the proceeds, NeuSAR will continue to develop software for the auto industry including self-driving technology, besides production innovations, and market extension, it said.
Following the funding round, NeuSAR’s financial reports will be maintained independently of its parent company.
NeuSAR was established by Neusoft in 2015 to expand into the automotive software industry. With its headquarters in Shanghai, the unit serves the industry based on a matrix of new generation software and solutions including general software, driving assistance systems, power transmission systems, and thermal management systems.
“Automative software will increasingly benefit automobile intelligence. In particular, the fundamental software products that connect hardware platforms and functional software, are critical for the safety of automative operation systems,” said CMG-SDIC Capital in a statement.
CMG-SDIC Capital, with over 100 billion yuan ($15.5 billion) in assets under management, has made big bets on the smart vehicle sector. Some of its portfolio companies include computer vision solutions developer ArcSoft, intelligent automobile solutions platform Banma, Horizon Robotics, AI chips developer JoyNext, and carmaker BYD’s spinoff BYD Semiconductor, among others.
Two months ago, CMG-SDIC Capital had teamed up with a slew of investors including Eight Roads, JD Logistics, IDG Capital, and South Korea’s Mirae Assets, collectively infusing $270 million in the autonomous trucks startup Inceptio Technology’s Series B round.