Fresh off a $230 million U.S. investment led by classified conglomerate 58.com (NSYE: WUBA), Chinese used auto marketplace Uxin (Nasdaq: XIN) recorded strong growth in its core b-to-c business in Q1. This is despite the overall downturn in the Chinese auto market extending in 2019.
Uxin facilitated more than 115,000 transactions in Q1, with b-to-c transactions growing by 40 percent year-over-year.
The company’s cross-regional transaction and delivery network is picking up steam at the right time. It’s helping Uxin offset a quiet period in the new and used auto market, fueled by trade conflicts with the US. Cross-regional transaction volume increased to 20,000 units in the first quarter of 2019, representing year-over-year growth of 48 times (“intra-regional” transactions grew just 3.6 percent).
In addition to a strong performance from a new business, Uxin’s core revenue driver remains loan facilitation. The company facilitated financing for 74,000 used car transactions in the first quarter of 2019, representing year-over-year growth of 63.8 percent. More than 95 percent of b-to-c transactions were completed with financing through Uxin in Q1 (b-to-c transactions totaled 78,000), bringing in $85 million U.S. in revenue.
In late May, 58.com and others made a $230 million U.S. investment in the b-to-b and b-to-c used auto marketplace. 58.com CEO Michael Yao Jinbo was named to the board of directors a week later. 58.com credited growth in Uxin’s cross-regional transaction business as a factor in the investment.
Uxin was founded in 2011 and claims to be the largest used car e-commerce platform in China. The company operates more than 670 service centers in more than 270 prefecture-level cities in China. It facilitates the trade of new and used vehicles.
Cindy Wang, the chief marketing officer at Uxin, resigned last week.