Uxin Limited, an online used car trading platform based in China, announced on Monday that its existing shareholders Nio Capital and Joy Capital have signed a binding letter of intent for investment in the company. Under the arrangement, the two entities have agreed to the subscription of shares for an aggregate amount of $100 million, which is in addition to financing transactions with the investors totaling up to $315 million, announced by the company in June, 2021.
The subscription price has been set at $0.7013/ADS, and the signing of the formal investment agreement is expected to be completed before June 30.
Founded in 2011, Uxin is a comprehensive services provider for second-hand car trading in China. It owns many sub-businesses such as trading platforms Uxin Pai and Uxin Used Car, as well as Uxin Data and Uxin New Car.
Uxin seeks to provide convenient and reliable one-stop car purchasing services to consumers in China through both online shopping malls and offline sales. All vehicles sold by Uxin are entirely self-operated, and each vehicle has undergone 315 vehicle tests, comprehensive maintenance and renovation.
According to data from the firm’s financial report, the total sales volume of Uxin from October to December of 2021 was 4,865 units, up 111% year-on-year and 33% quarter-on-quarter. According to the latest data released by the China Automobile Dealers Association, the country’s used car car industry recently recorded negative growth due to various factors, and sales decreased by 16% year-on-year in March. In contrast with the sluggish industry data, Uxin says it expects its business to have maintained strong development momentum from January to March of this year.