Warburg-backed Singapore unicorn Trax targets $3b valuation in three years

Trax CEO Joel Bar-El
Trax co-founder and CEO Joel Bar-El speaks at the Asia PE-VC Summit 2018 organised by DealStreetAsia.

Singapore-headquartered computer vision solutions and analytics firm Trax is looking at reaching a valuation of $3 billion in three years after hitting the unicorn status this year, according to its co-founder and chief executive officer Joel Bar-El.

Speaking at DEALSTREETASIA‘s Asia PE-VC Summit 2018, Bar-El said the valuation target is “not far-fetched” as the company has already reached a valuation of $1 billion a year after it raised $64 million in a funding round led by private equity firm Warburg Pincus.

Trax has so far raised $286.7 million in eight rounds since June 2011. Broad Peak Investment led a $40-million investment in June 2016 while Warburg Pincus backed Trax by leading a $64-million Series D in June 2017. In July of this year, Trax raised $125 million in a funding round led by Chinese private equity firm Boyu Capital.

Before that, it had raised a $40 million Series C in June 2016.

“Warburg Pincus told us to get to $3-billion valuation in three years and we are already one-third of the way out of the three years. That is something we could not have thought of or envisioned to achieve without them pointing the way,” Bar-El said.

Additionally, the Trax co-founder and CEO said the continuous growth of the business is expected to push the company into a billion-dollar revenue firm in the next few years.

“Essentially, the growth margins are there. Our growth has been about three digits year-on-year for the past years so we are going very fast. We are investing back all our profit into the growth of the business and as long as that formula works, profitability will not be an issue,” he said.

Trax, an Israeli-developed company but headquartered in Singapore, provides in-store execution, market intelligence, and data science solutions for consumer packaged goods (CPG) companies and retailers through its computer vision-to-platform, in order to process photos taken in store and deliver granular store-level insights within minutes. It builds a proprietary retail database and analytics products.

Bar-El also disclosed that Trax considers an initial public offering (IPO) as another milestone but is not a goal yet at present. Before it reached the unicorn status, Trax had looked at exchanges in Australia and Tel Aviv but the growth of the company over the years could see it list in the US.

“We will do an IPO at some stage but we are currently considering when is the right timing, so there is no specific date or time. We are going to do it but we are not pressured to do it and it is not a goal at all,” he said.

Also Read:

Warburg-backed Trax raises $125m in Boyu Capital-led round

PE firm Warburg Pincus leads $64m round in Singapore-based Trax