Trade X, a Canadian-based global business-to-business, cross-border automotive trading platform, has secured new funding as part of its plans to expand globally.
The company has announced that it has received an equity investment of US$33 million from Aimia Inc., a Toronto-based holding company that invests in public and private companies globally.
The new funding follows an announcement in February that TRADE X secured US$50 million in funding from a global hedge fund company to expand its business globally. An additional US$10 million of convertible preferred shares may be issued by TRADE X to other strategic investors in a subsequent closing to be held no later than Aug. 6 to achieve the company's target round size of US$45 million.
“Our initial funding round was a debt facility designed to provide trade financing to our platform users to facilitate the buying and selling of pre-owned vehicles across borders,” Trade X founder/CEO Ryan Davidson told Automotive News Canada. “Our current funding, an equity round, provides TRADE X added liquidity to expand and grow its business.”
Founded in July, 2018, TRADE X, is set up as a third party to ensure the condition of the cars that are being bought and sold are verified, the money exchanged is secure, the vehicle gets to where it is going and sellers are paid in their local currency with applicable taxes.
Davidson said the additional working capital in combination with TRADE X’s existing debt facility “allows TRADE X to officially launch the platform in a multitude of markets and scale the business through acquisitions and partnerships.”
Trade X plans to launch a marketing campaign later this year, said COO Luciano Butera.
“With this new investment we’re looking at … pushing our marketing campaign in the last quarter of this year because we’re rolling out the global initiative, more than just the Canada-U.S. model.”
Davidson said the plan is to market the product in 20 countries in regions such as Africa, the Middle East and Europe.