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Invest in Trax Retail
Trax has built the most advanced computer vision platform for the retail industry. By scanning merchandise with a mobile app and cameras installed in stores, retailers can track sales performance more effectively. The machine learning system helps retailers analyze and identify when inventory is low on store shelves, optimize the allocation of products to meet customers’ preferences and predict future demand. Trax counts some of the world’s largest retailers as clients, including Best Buy and Auchan.
Many of the world’s top companies that offer consumer packaged goods (CPGs) use Trax’s merchandising, in-store execution, shopping engagement, market measurement, analytics, and shelf monitoring solutions. Among them are Coca-Cola, P&G, Nestle, Unilever, Bayer, Shell, Sanofi and other well-known global brands.
Founded in 2010 in Singapore, Trax dominates the market in its segment and was named one of the fastest-growing technology companies on the Deloitte Technology Fast 500 list. It owns 23 patents and hubs in major cities around the world, including Moscow.
The global smart retail devices market was valued at $17 billion in 2019 and is projected to reach $74.6 billion by 2027, representing a CAGR of 17%.
In 2020, 49% of retailers have invested in planning and demand prediction tools. This trend will only grow as retailers need to optimize costs to maintain the margins of their businesses because of the high competition among retailers and pressure from online stores.
As far as the consumer sector goes, the adoption of AI technologies here is less than 40% (compared to 60% in the automotive and financial industries). This shows formidable AI expansion opportunities in this sector. Investments in AI technology for the consumer segment enjoy the highest projected returns.
In addition, the retail market is generally highly consolidated and dominated by major players. Thus, partnerships with them are a competitive advantage for Trax and an entry barrier for new players. Trax has enough liquidity for acquisitions and strategic access to unique information.
In April 2021, Trax had a huge funding round, securing investments from Softbank and BlackRock. This puts the company in the "too big to fail" category, as investment funds of this level take an active part in the development of their portfolio companies and help them achieve high valuations.
Three types of Trax competitors can be identified on the market: retail consulting companies such as LatentView, retail processing tools such as IRI, and analytical platforms such as RW3 and Sisence, which issue recommendations to B2B companies. But Trax is the leader, thanks to the most developed FMCG product, as confirmed by its client base.
The company has opted for takeovers as one of its main growth strategies. The last acquisitions were made in February and March 2020, with a few more scheduled for 2021. If anything, this is quite a costly process, and adaptation of new companies takes a long time. This affects the free cash flow of the company, making it unlikely that break-even point will be reached soon.
Over 10 investment rounds, the company has raised more than $1 billion from investors, including SoftBank, BlackRock and Sony Innovation fund, known for their investments in successful technology startups. The investment round in April 2021 valued the company at $2.4B.
Trax revenue is growing steadily at a high rate due to the influx of new clients and an increase in the number of clients with a high average check. The CAGR in 2015-2019 was 80%. In 2020, the revenue increased by 50% compared to 2019, despite the negative impact of the pandemic and amounted to the north of $100M. Given the average P/S 25x for high-growth tech companies and Trax Retail’s large market size, the expected value of the company at IPO hovers around $5-7B.
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For an investor the above means that the pre-IPO or OTC investment may be exited after paying a part of its value, usually around 15% which is caused by highly-priced instruments used to close the position. To do so, you should press the respective button in your members area as soon as it becomes active.
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3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.
0.5% of the share sell amount after the trade. The fee is charged at the investment exit.
20% of the profit gain. The fee is charged only if the trade is profitable at the time of exiting.
EARLY EXIT FEE
Usually a 15% fee is charged subject to the actual situation at the exchange. The fee is calculated individually for each investment.
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Venture investing is very risky as they involve new or growing companies, and multifold increase in capitalization is expected. We prioritize companies at the pre-IPO stage as they already demonstrate strong financial indicators and plan to go public soon. This approach allows limiting hyper-risks related to insolvency of new companies and substantially increasing profits as compared to investors who buy shares through a subscription just before the IPO.
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To buy the OTC stocks, one would need millions of dollars. We gathered a pool of traders and investors allowing everyone interested to join similar transactions with as much as $10.
United Traders is experienced in minimizing risks but a future investor should be aware of all risk types:
- Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.
- Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.
- Time uncertainty. There is no information regarding next financing round or exit strategy timeframe (IPO or M&A).
- Share dilution. The issue of additional shares by a company may reduce the value of shares of existing investors.