Michael Yao Jinbo, CEO of classified giant 58.com (NYSE: WUBA), has been named to the board of directors of Uxin (Nasdaq: XIN) amidst a significant executive shake-up. This comes a week after 58.com and others made a $230 million U.S. investment in the b-to-b and b-to-c used auto marketplace.
Other changes to the Uxin board include the appointment of Qiang Chang Sun as a director along with Yao. Qiang is an executive at TPG Capital, which also joined Uxin’s most recent funding. Shun Lam Steven Tang and Yong Zhong Huang were appointed as independent directors to the board, while Zhen Zeng and Brian Hongdi Gu resigned from their respective director positions. Zeng will remain as the CFO of Uxin.
58.com bought up $100 million U.S. of the convertible notes issued by Uxin. The move signals shifting allegiances in Chinese used autos. 58.com incubated c-to-c used auto leader Guazi — which became CheHaoDuo along with its new autos counterpart Maodou.com. The company is valued at around $9 billion U.S., following a massive $1.5 billion U.S. investment from the SoftBank Vision Fund in February.
58.com has, however, quietly been distancing itself from Guazi’s allegedly severe profitability problems — a sign that the savvy investor isn’t taken with the prospects of its own progeny. According to 58.com’s FY 2018 annual report, the company’s equity stake in CheHaoDuo has been cut from 19 percent in December 2018 to just 8 percent at the time of writing. 58.com sold a considerable stake to an undisclosed party for $700 million U.S. in March.
Earlier this week Uxin announced the resignation of Cindy Wang from her post as its chief marketing officer.