Digital China Information Technology Service Co., a provider of IT services, has secured CNY500 million ($73 million) in its first round as it spins out from its parent company, Digital China Holdings Ltd.
Suzhou Ventures Group led the round with a $58 million commitment. The remaining $15 million was provided by Infinity Equity, according to Amir Gal-Or, a managing partner with Infinity.
The investment will give Suzhou Venture Group an 18.6% stake in the company. Infinity will take 4.65%, and the remaining 76.75% will be held by Digital China Holdings.
Infinity Equity made the investment out of its Infinity I-China Fund, which is jointly managed by Infinity and Suzhou Ventures Group. The fund aims to invest in late-stage Israeli technology companies with parallel investments in Chinese businesses that license Israeli technologies. The fund recently held a $300 million close, and Gal-Or said it may add as much as $50 million more in the next few months.
The deal will help Infinity establish a sales channel into China for a number of Israeli companies. Gal-Or said Infinity chose to invest in Digital China IT because of its well-known brand in China, which is especially important in that market.
This is the I-China Fund's fourth investment to date. Two more are expected to close shortly, Gal-Or said. | 
