Korean-American investment firm PacificBridge Asset Management — a joint venture affiliated with TPG Capital, and MCM Investment Partners — has made a $50 million U.S. investment in Chinese b-to-b and b-to-c used auto marketplace Uxin (Nasdaq: XIN), via a convertible note purchase agreement.
The convertible notes will mature in 12 months or 15 months, bearing interest at the rates of 10 or 11 percent per annum, depending on the maturity date. Each note will be convertible into Class A ordinary shares of Uxin at a conversion price of $1.6 U.S. per share. Kun Dai, founder, chairman and CEO of Uxin, said, “We are pleased to welcome PacificBridge as our new investor. This new private placement will bolster our initiatives to optimize the online used car purchasing experience and better position us to extend our leadership in China’s used car e-commerce sector.”
At the end of last week, Uxin announced that it will divest its financing facilitation business — which accounts for more than half of the company’s revenue — to financial technology platform Golden Pacer, in return for $100 million U.S. cash and a “certain number” of shares of Golden Pacer.
In late May, 58.com and others made a $230 million U.S. investment in Uxin. 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.