The Dublin-based digital property investment specialist has secured €13m from two investors to accelerate its expansion in Europe and in the non-performing loan market.
doValue, a credit management real estate service provider for banks and investors in Southern Europe, plans to acquire a 15% stake in BidX1 for €10m. International management consulting firm Oliver Wyman has also agreed to buy a 5% stake in the company.
As part of its deal with Oliver Wyman, BidX1 will acquire the company’s online platform for NPL transactions.
BidX1 said the investments mark “the beginning of another phase” of strategic growth for the company as it targets expansion in both its geographical footprint and its products.
Operating across the UK, Ireland, South Africa, Spain and Cyprus, BidX1 is best known for digitising the auctions market. Last year, the company doubled its UK sales even as auctions in the wider market slowed down.
The investment from doValue will give the company access to parts of Europe in which the service provider is active, including Italy, the Iberian Peninsula and Greece.
Existing investors Pollen Street Capital and BidX1 founder Stephen McCarthy will maintain majority stakes in the business.
McCarthy said: “[doValue and Oliver Wyman’s] investment validates BidX1’s position as an innovator in the property industry and is a further recognition of the company’s potential for growth.
“Their expertise will be invaluable as we continue to scale our platform globally, expand our service offering and continue to improve the property transaction process for buyers and sellers.”
Daniele Della Seta, head of M&A and strategic finance at doValue, said: “BidX1 will be an important pillar of doValue’s diversification strategy aimed at investing in high growth sectors with tangible cross selling opportunities with our existing core business.”
Vicente Vázquez Bouza, partner in corporate finance & restructuring at Oliver Wyman, said: “We are looking forward to sharing our NPL technology with BidX1 and becoming a shareholder in a company with high growth potential.
“As NPL and property markets continue moving towards increased liquidity, the value proposition that BidX1 now offers will position it to become the pre-eminent NPL and property platform in Europe.”