X Mile Inc., a Japanese workforce and software platform serving the logistics, construction, and manufacturing sectors, has raised 3.17 billion Japanese yen ($22 million) in a Series C funding round led by Vertex Growth, as it accelerates investments in artificial intelligence and acquisitions.
The financing brings the Tokyo-based startup’s total funding to 6.96 billion yen since its founding in 2019.
The round also attracted existing and new investors including ALPHA, SMBC Nikko Securities, SOMPO Growth Partners, University of Tokyo Edge Capital Partners, SMBC Venture Capital, Minerva Growth Partners, Japan Post Capital, and JPS Growth Investment.
X Mile said it will use the proceeds to expand its suite of industry-specific AI products and pursue acquisitions of complementary businesses and teams. The company is targeting Japan’s “non-desk” industries, which are grappling with persistent labour shortages, an ageing workforce, and succession challenges.
Founded as a staffing platform connecting workers with employers, X Mile has since expanded into software, AI tools, M&A advisory, and vehicle sales for transportation and logistics operators. The company said its software platform has more than doubled annual recurring revenue over the past year and now serves more than 30,000 business locations, with over 1.2 million registered job seekers.
Chief executive Hiroyuki Noro said the funding will support further investment in vertical AI, expansion of the company’s M&A capabilities, and deeper partnerships with large corporations as it seeks to become a core management platform for Japan’s non-desk industries.
“Beyond staffing, X Mile is building a promising software business for the transportation sector, one that has strong potential for both profitability and scale,” said Tam Hock Chuan, general partner at Vertex Growth,
“We believe X Mile’s business model, combined with its valuable data from successfully matching candidates with vacancies, positions the company to deliver even greater value to customers through automation and AI.”
