Neusoft Reach raises RMB650 million in its first round of financing, with CS Capital as the lead-investor
Shenyang, October 11, 2021 – Today, Neusoft Corporation (Neusoft) announced that its subsidiary, Neusoft Reach Automotive Technology (Shanghai) Co., Ltd. (Neusoft Reach), received an investment of RMB650 million from CMG-SDIC Capital Co., Ltd. (CS Capital) and Virtue Capital, which is Neusoft Reach’s first round of financing. With the engagement of well-known investment institutions represented by CS Capital, this round of financing will provide Neusoft Reach with funds and strategic resources to promote continuous business growth in the era of software-defined vehicles (SDV) and inject new impetus into its continuous innovation and development in the future.
According to Neusoft’s announcement, Neusoft Reach has raised a total of RMB650 million, among which, CS Capital contributed RMB600 million and Virtue Capital contributed the rest RMB50 million. After this round of financing, CS Capital will hold 9.30% and Virtue Capital hold 0.78% of Neusoft Reach’s equities, and Neusoft Reach will no longer be included in Neusoft’s consolidated financial statements.
Neusoft Reach was established in October 2015. As an innovation company in the automotive industry, it is committed to providing next-generation automotive platforms and key technologies. It provides auto makers with products, technology, and overall solutions in the areas of automotive basic software, assisted driving and autonomous driving, vehicle-cloud integrated software and services, domain controllers and software for the powertrain systems of new energy vehicle, energy and thermal management systems, and mobility service platforms.
After this round of financing, Neusoft Reach will continue to strengthen the R&D in the automotive basic software NeuSAR, assisted driving and autonomous driving to further enhance product competitiveness and expand market share.
CS Capital, the lead investor of this round of financing, is one of the largest professional private equity fund managers in China, and currently advises and manages over RMB 100 billion (US$ 14.4 billion) of capital. The co-investor Virtue Capital is a professional investment institution focusing on the entire automotive industry chain, and deploys its investment in automation, electrification, connectivity, and sharing.
Neusoft said that through continuous R&D and market investment since its establishment, Neusoft Reach has gained abundant technological experience, a variety of product lines and leading market status in automotive basic software products, assisted driving systems, and new energy vehicle powertrain systems. CS Capital has rich investment experiences and industrial resources in automotive and advanced manufacturing. Virtue Capital is a professional investment team that focuses on the automotive industry with profound experience. The joint investment of CS Capital and Virtue Capital will provide sufficient development funds and resources for Neusoft Reach to support its future continuous growth.
The automotive team of CS Capital said that software has increasingly prominent significance to automotive intelligence, in particular, the automotive basic software that connects the underlying hardware platform and the upper functional software plays a vital role in the stability and reliability of the overall automotive system. Neusoft Reach is one of China’s leading automotive basic software companies, and its self-developed automotive basic software platform NeuSAR provides the underlying software support for the next-generation smart vehicles to achieve more personalized and intelligent applications and promotes the intelligent evolution of the automotive industry.