Uxin Limited, an online used car trading platform, announced it has entered into definitive agreements with Nio Capital and Joy Capital, in which both firms have agreed to invest a total of up to $315 million in the company.
At the same time, the holders of Uxin’s convertible notes, including 58.com, TPG and Warburg Pincus, intend to transfer notes worth $69 million into ordinary class A shares. The firm said more than 10 important investors, including the two new investors and aforementioned note holders, have committed to refrain from selling their shares in the company for nine months. The transaction is subject to customary closing conditions stipulated in the agreements.
Uxin Limited is a leading online used car dealer in China, providing high-quality used cars and first-class procurement services. Its one-stop online mall provides consumers with a nationwide selection of used cars, various value-added products as well as complete after-sales service. Uxin’s revenue from October to December 2020 reached 322.9 million yuan ($49.5 million), while its net loss for the same period reached 172.9 million yuan ($26.5 million).
“China’s used car industry has great development potential. As a leading enterprise in the industry, Uxin has effectively tackled critical problems that affect traditional dealers by relying on a one-stop business model to provide high-quality vehicles and perfect after-sales service for consumers. We believe Uxin will continue to lead the development and promote the transformation of the second-hand car industry,” said Li Bin, Chairman of Nio Inc. and managing partner of Nio Capital.
Liu Erhai, founding and managing partner of Joy Capital, said that “[Uxin] have always focused on vehicles or traveling. After exploring the field of used cars in China for nearly ten years, Uxin has made solid progress and accumulated rich operation experience. Uxin’s solid brand and reputation, along with its strategic direction following the business transformation, will lead to its greater success.”
Dai Wei, founder, chairman and CEO of Uxin Limited, said: “It is a great honor to be able to work together with Mr. Li Bin and Mr. Liu Erhai again. I would like to express my appreciation to them and our shareholders for their affirmation of our strategic direction and their trust in our team. The company’s success and challenges in the past decade have made us firmly believe that the only way for us to realize our goals and mission is to wholeheartedly create value for our users. China’s used car industry is in the transition period of rapid development. We will adhere to the simple and true values to serve our users, and continue to uphold our long-term vision to promote the development of China’s used car industry.”
According to a report published by ResearchAndMarkets, the Asia-Pacific region currently dominates the global used car market, followed by LAMEA, North America and Europe. China dominated the global market in 2019, while South Korea is expected to grow at a significant rate in the Asia-Pacific region.