Global B2B automotive trading platform Trade X completed its financing round on July 27, gaining an additional equity funding of US$10 million (at a US$250 million pre-money valuation) from new investors.
“We are humbled by the support that we have received this year from investors who are confident that the market for international trade in pre-owned vehicles is ripe for disruption,” said Luciano Butera, EVP and COO of Trade X.
This round of funding was led by EchoVC, Frontier Ventures, and Ugrowth, among others. Trade X also raised US$35 million in equity from its lead investor Aimia, and earlier this year closed a transaction for a senior secured revolving line of credit of US$50 million.
The cross-border trade of pre-owned vehicles is not a frictionless process. Butera considers the global automotive industry as having no real place to connect or obtain accurate pricing information, trade financing, compliance, and logistical—at least not before Trade X. His investors are also aware of the issues.
“Structural, legal, and financial barriers have created massive market inefficiencies in international auto trade despite increasing cross-border demand worldwide,” said Peter Harris, Founding Partner at Ugrowth.
He said the Trade X platform will provide buyers with more options and better pricing, while giving sellers a larger market through which they can move vehicles.
Trade X aims to solve these challenges by providing a “highly transparent, secure, and compliant marketplace for automotive buyers and sellers to transact, accelerate their inventory turnover and boost their profits,” said Butera.
The company plans to use the money it raised for acquisitions and global expansion across North America, Europe, Asia, Africa, and the Middle East.
