UXIN likely to bag new capital from existing shareholders including NIO Capital

Shanghai (Gasgoo)- Uxin Limited (“UXIN”, or “the company”), a leading Chinese online used car dealer, on May 16 entered into a binding term sheet with affiliates of two existing shareholders, NIO Capital and Joy Capital (collectively, the “Investors”) for new financing business, according to a document it filed to the Nasdaq Stock Market.

Photo credit: UXIN Used Car, UXIN's used car e-commerce platform

Per the binding term sheet, the Investors have agreed to negotiate and sign definitive agreements with UXIN for the subscription of senior convertible preferred shares worth a total of $100 million, which will be issued by UXIN at a price of $0.2337 per share (equivalent to $0.7013 per American depositary share of UXIN).

The potential transaction is in addition to the financing transactions with the Investors of up to $315 million announced by UXIN on June 15, 2021.

The company said the definitive agreements are expected to be signed by June 30, 2022.

Uxin, which means quality and trust in Chinese, is the largest used car e-commerce platform by number of transactions and gross merchandise volume. It was founded in 2011 and went public on the Nasdaq Stock Market in 2018. Its one-stop online shopping mall provides consumers with a nationwide selection of value-for-money used cars, various value-added products and services, as well as comprehensive aftersales services.