Transforming Uxin Finds Government Support in Anhui

Used car seller unveils plan to build $388 million reconditioning center in eastern province, even as its cash levels remain low Key takeaways: Uxin’s new $388 million investment in Anhui is part of its broader plan to transform from a middleman to a direct used car seller One of the company’s biggest challenges going forward could be a lack of cash to execute its cost-heavy transformation plan By Mo Yelin Online used car seller Uxin Ltd. (UXIN.US) made a bold move last June to reinvent itself – shifting gears from…

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Transitioning Auto Specialist Cango Can’t Outrace Macro Challenges

Company blames regulation, auto chip shortage for its stalling revenues, as it continues to ramp up car-trading services   Key Points: Cango has improved its overall performance with a timely shift toward auto trading to complement its struggling auto financing business Company blames regulatory challenges at home and global chip shortage for stalling revenue growth By Eric Auchard China’s race to create a successful car trading and financing platform blending online and offline services has become a game of business-model bumper cars, and an auto graveyard for some. The result…

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Transforming Used Car Seller Uxin Gets Charge from Big-Name New Investors

Electric car startup Nio and private equity firm Joy Capital provide $100 million in much-needed new funding Key points: Uxin’s $100 million in new funds comes at a big discount in exchange for much-needed new capital and well-connected partners Investors are betting on big revenue growth as company transforms to a direct seller of used cars from previous middleman business model By Doug Young When it comes to doing business, having the right people on your board can be a huge asset by providing valuable connections to funding and other…

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Used Car Specialist Uxin Gets Jump Start from Shifting Gears

Shares rally as company announces first results from its new business model and Singaporean sovereign wealth fund GIC boosts stake Key points: Uxin is emerging from a major transformation to a direct seller of used cars from previous model as middleman for used-car sales While such a model carries higher margins and gives Uxin more control over the business, it also requires far more cash, which Uxin is trying to raise By Doug Young Nothing gets investors excited like a new story from an old company, together with a major…

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