Uxin Limited, a China-based online used car trading platform, announced on Monday that its existing shareholders Nio Capital and Joy Capital have signed a binding letter of intent to invest in the company. As part of the arrangement, the two entities have agreed to subscribe for shares for an aggregate amount of $100 million, which is in addition to financing transactions with 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 finalized by June 30.
Founded in 2011, Uxin is a full-service provider for the used car trade in China. It owns many sub-companies such as Uxin Pai and Uxin Used Car trading platforms, as well as Uxin Data and Uxin New Car.
Uxin seeks to provide convenient and reliable one-stop car shopping services to Chinese consumers through online shopping malls and offline sales. All vehicles sold by Uxin are fully self-driving, and each vehicle has undergone 315 vehicle tests, comprehensive maintenance and refurbishment.
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According to data from the company’s financial report, Uxin’s total sales volume from October to December 2021 was 4,865 units, up 111% year-on-year and up 33% from one quarter to the next. According to the latest data released by the China Automobile Dealers Association, the country’s used-car industry recently recorded negative growth due to various factors, and sales fell 16 percent year-on-year in March. Contrary to gloomy industry data, Uxin expects its business to have maintained strong development momentum from January to March this year.