China-based online used car marketplace Uxin has raised $170m in funding from investors including search engine operator Baidu.
Baidu was joined in the round by investment firm KKR, and investment management firm Coatue Management. The funding, announced yesterday, was closed on Sunday.
Founded in 2011, Uxin’s core service is an auction site for used cars. The company employs specialists across 50 Chinese cities to verify the condition of each car put up for sale on its platform.
In addition to used car auctions, Uxin also offers a financing service for those wishing to buy second-hand vehicles and a retail platform that enables businesses to sell used cars on to consumers.
Uxin plans to spend the funding in expanding the latter, and revealed the funding shortly after the launch of Uxin Used Car, a marketplace that will connect car sellers with second-hand buyers. It has also launched an app version of the service in beta.
Kaiser Kuo, Baidu’s director of international communications, said: “Baidu is focused on connecting people with services, and on offering an end-to-end, closed loop experience from initial query to payment and fulfilment.
“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. With Uxin, we have the opportunity to work closely with the leader in this important, fast-growing space. Together we can meaningfully improve the whole experience of buying a used car in China.”
Uxin will also use a portion of the funding to buy out earlier investors in the company, according to the Wall Street Journal. Private equity firm Warburg Pincus invested $260m in Uxin in September 2014.