Chinese online used-car company Uxin raises $170 million
March 20, 2015 08:14 AM
China-based used-car online auction company Youxinpai (Beijing) Information Technology Co. Ltd., or simply Uxin, has raised $170 million in a Series C funding round at a time when China’s online used car market is booming. Uxin plans to use the funds raised to expand from business-to-business e-commerce into online retail. Earlier this week, Uxin introduced Xin.com and its mobile app as a new platform to enable auto retailers sell to online shoppers across China.
Launched in 2011, Uxin’s website Youxinpai.com enables clients to place volume orders of second-hand cars from dealers or other organizations. Uxin helps buyers check every car and confirm the quality of the vehicles sold on its platform. The company says it will refund the purchase price within 15 days if buyers discover undisclosed issues with any purchases.
“Uxin hopes to use the strengths of its Internet technologies and experience in the used car market to improve the efficiency of transactions and to help dealers identify potential buyers with greater accuracy,” Uxin CEO Chris Dai says. “Additionally, we want to provide more detailed information on vehicles, using our self-developed proprietary CheckAuto quality verification system to boost customer trust and confidence in used car transactions.”
Investors include Chinese search engine behemoth Baidu Inc. and two U.S.-based investment firms KKR & Co. L.P. and Coatue Management LLC. Baidu is the largest search engine in Chinawith an 81% market share in China in 2014 according to research company iResearch. “Baidu is focused on connecting people with services, and on offering an end-to-end, closed loop experience from initial query to payment and fulfillment. We want to provide people in the market for used cars with all the information they need to connect them with the best, most reliable sellers, and to make their transaction as efficient and transparent as possible,” says Kaiser Kuo, director of international communications at Baidu.
For more Chinese e-commerce data, please click here for information on the just-released Internet Retailer 2015 China 500.