Uxin, a Chinese-based used car retail platform, recently raised new funds only a year after their Nasdaq IPO which raised $225 million.
The company announced recently that it’s selling $230 million worth of convertible notes to 58.com — China’s answer to Craigslist, Warburg Pincus, TPG and other investors. The fresh proceeds will go toward strengthening its cross-regional car transactions, a new area of focus for the firm.
The notes convert to Uxin’s Class A ordinary shares at a price of $1.03 per share or $3.09 per ADS. Upon closing the deal, each of 58.com, Warburg Pincus and TPG will obtain the right to nominate one board director to Uxin.
Uxin was trading at $2.46 at the end of Tuesday, a 74% decline from its recent peak in January. Its stock tanked in April after short-seller J Capital Research broadsided it over alleged frauds. Uxin denied the accusations, saying they were “false and misleading.”
58.com made the investment only a few months after offering to sell an undisclosed amount of its stakes in Chehaoduo, which was formerly known as Guazi, for a total of $713.6 million. Chehaoduo is one of Uxin’s closest rivals and is backed by deep-pocketed investors like SoftBank’s Vision Fund, which bankrolled it with $1.5 billion in February. Uxin’s other serious competitor is Renrenche, which raised $300 million led by Goldman Sachs a year earlier.
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