Global B2B automotive trading platform Trade X Group of Companies Inc., will increase its worldwide expansion through acquisition and growth in North America, Europe, Asia, Africa and the Middle East, thanks to a $35 million equity investment in the company by Aimia Inc., per a press release Tuesday (July 27).
Under terms of the deal, Trade X can also issue up to $10 million in convertible preferred shares to other strategic investors by August 6 to reach its goal of $45 million in fundraising for this round.
Trade X’s fully integrated platform is powered by the company’s proprietary “Brain” technology, which uses machine learning (ML) and artificial intelligence (AI) to help users with functions such as searching for and requesting specific vehicles, looking at global pricing analytics, posting vehicles for sale, getting financing and buying or selling in their preferred currency.
Trade X pays sellers instantly and securely in their local currencies. Per the release, all users “ must undergo a strict onboarding process to verify licenses, tax ID and compliance with commercial regulations, and only after all information is approved and verified are they granted access to the Trade X authorized network.”
Gross vehicle sales for Trade X in the first six months of 2021 exceeded gross sales for 2020. Other sources indicate company leaders expect that number to be higher in the second half of the year.
According to Ryan Davidson, founder and CEO of Trade X, B2B used car commerce is much more difficult when the buying and selling process goes cross-border.
During an interview with PYMNTS, Davidson identified finance and payments as two of the biggest pain points. Sleek user interfaces can improve the experience for buyers, but that isn’t likely to solve areas of friction that can unsettle B2B cross-border trade for buyers and sellers. Financial functionality is needed for that.
“The overriding global need for a unified automotive trading platform has never been greater,” said Davidson in the release from Tuesday. “With this additional funding, we will expand our reach across multiple continents, connecting buyers and sellers beyond their borders.”
As part of the transaction, Aimia CEO Phil Mittleman will join Trade X’s board of directors.
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