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Trax On Track To Become S'pore's 2nd Most Valuable Startup, Now In Talks To Raise $100M

Singapore-based Trax, a startup serving the retail industry, is finalising a deal to raise $100 million at a pre-money valuation of about $1.1 billion, according to a report by Bloomberg.

This could make the startup the second-most valuable startup in Singapore.

A few private equity firms are in talks with the startup and the funding round is expected to close by end-June, CEO Joel Bar-El told Bloomberg.

Trax, described as an image recognition software developer, will use the funds to finance three acquisitions, one of them is LenzTech Co. a direct competitor based in Beijing.

Following this acquisition, Trax will integrate 110 of LenzTech’s employees, including 60 research and development staff, with its subsidiary there.

The firm is in advanced negotiations to buy a European competitor and a US company, according to Bloomberg.

In the next 18 to 24 months, Trax will be preparing for an initial public offering on Nasdaq or the New York Stock Exchange.

But the company is now also in talks with the Singapore Exchange (SGX) for a potential dual listing after the local exchanged approached them, Bar-El told Bloomberg.

Last year, in a round led by Boyu Capital, a Chinese private equity firm that helped facilitate the LenzTech acquisition, Trax raised $125 million.

Singapore’s sovereign wealth fund GIC Private Limited joined as a shareholder later.

Bloomberg reckons Trax’s valuation should place them just after ride-hailing giant Grab’s, among Singapore-based tech startups.

Coca-Cola Co. and Nestle are some of the many global customers that uses Trax’s image recognition technology to track their products on retail shelves.

Trax has 175 clients in 50 countries and the CEO said that the company “has always burned very little cash”.

“As long as you have a good company that has a solid business model, blue chip clients and expanding business model, those companies will always be successful.”

After a chance meeting in Singapore with Dror Feldheim, who is now the Chief Commercial Officer, Bar-El founded Trax here in 2010.

Featured Image Credit: Bloomberg

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