NIO Capital, the technology fund backed by Chinese electric vehicle (EV) brand NIO, and investment firm Joy Capital have agreed to inject a total of $315 million into Uxin Limited, a Nasdaq-listed Chinese online used car dealer.
Concurrently, Beijing-based Uxin agreed with its convertible notes’ holders, including online classifieds marketplace 58.com, as well as private equity (PE) companies TPG and Warburg Pincus to turn their convertible notes in an aggregate principal amount of $65 million into Class A ordinary shares of the firm, Uxin announced this week.
Over ten investors, including NIO Capital, Joy Capital, and the aforementioned convertible notes’ holders, would agree not to sell their shares in Uxin in the next nine months, said the firm.
Founded in 2011, Uxin is a Chinese online used car dealer that provides consumers with a one-stop online shopping mall of used cars, aftersales services, and other value-added products. Its fulfillment network supports nationwide logistics and delivery, as well as title transfers between different cities across China to serve online transactions.
The update marks another fundraising effort by Uxin, one of China’s biggest used car trading websites that has yet to turn profits.
It went public in the US in June 2018 after raising $225 million in its halved initial public offering (IPO) amid intensified trade tensions between China and the US. After the listing, the firm moved on to offer $230 million worth of convertible notes to 58.com, Warburg Pincus, TPG, and other investors in 2019.
Last year, Uxin announced in March a plan of selling its business-to-business (B2B) car auction unit to 58.con for $105 million in cash. Following that, the firm in October sold more shares to Singapore’s sovereign wealth fund GIC, which ended up holding an 11.4% stake after the undisclosed deal.
In the fourth quarter of 2020, Uxin recorded total revenues of 322.9 million yuan ($50.1 million), compared to 76.4 million yuan in the previous quarter and 466.4 million yuan in Q4 2019. Its net loss was 172.9 million yuan ($26.8 million) during the same period, according to its unaudited financial results.