58.com, China’s largest online classifieds marketplace, completed the acquisition of Uxin’s B2B used-car platform for a total transaction value of $105 million.
Michael Jinbo Yao, Chairman and CEO of 58.com, commented on the deal, “The purchase of Uxin’s B2B used car auction platform marks another important step in the roll out of our new ‘all in service’ strategy. Uxin’s auction business directly complements our used car business. We are already a leading B2C player in the industry that generates significant consumer traffic to used car dealers in China. With the addition of Uxin’s B2B auction platform, we can expand the options we can offer dealers.“
The deal will help 58.com enhance its used car trading ecosystem. While there was a downturn in the overall Chinese automotive market in 2019, car sales are increasingly being conducted online. Transactions like 58.com’s acquisition of Uxin’s B2B platform are just the latest installment in the broader digitization of the automotive market.
Uxin, like many other automotive marketplaces, has been struggling amid the difficult macroeconomic environment for most of 2019. The sales of their B2B platform will infuse the company with some much needed cash, while cementing their strategic pivot to B2C. The company’s share price has plummeted from around $3.50 a year ago to $1.40 as of the market close on March 24.
Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, commented, “ Our B2B business is where we began our journey exploring market opportunities in China’s used car industry years ago. As we expanded into the retail market, we have gradually shifted our strategic focus to the 2C business. By entering into this transaction, we will be able to devote all our attention and resources towards developing our 2C online transaction business and strengthen the one-stop online buying experience for consumers.”