Israeli-Singaporean Company Trax Raises $125 Million for Retail Technology

CEO says fundraiser may be last before the company, which manufactures image-recognition technology, goes public

Trax managers Dror Feldheim, right, and Joel Bar El.
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Trax Image Recognition, an Israeli-Singaporean company whose image-recognition technology is used by retailers to track their business, said a group of investors had invested $125 million into the company.

The round, which values Trax at $800 million, was led by Boyu Capital, joined by the British media company DC Thomson. As in the previous funding round, some of the capital will be used to buy share from early investors, but this time around Trax said the percentage was small. Since 2010, Trax has raised $235 million.

“We hope that the current fundraiser is the last before a possible initial public offering, but it is difficult to say for certainty,” CEO Joel Bar-El told TheMarker. “The company has planned an IPO for a long time but we’re still not sure about when is the right time to do it. We’re investing a in a growth.”

Most digital technology designed for the retail sector has to do with online sales, but Trax’s technology aims to make the operations of brick-and-mortar stores more efficient, which Bar-El said remains an important part of the retail business.

“About 90% of shopping worldwide is still done in physical stores,” said Bar-El. “In addition, the online world is still dependent on the offline world because they use physical stores as warehouses to fulfil orders. Because our system allows retailers to understand at any time what the situation on the shelves – it also contributes to online shopping.”

Trax’s technology uses images of products on the shelf taken with smartphones and tablets and processes the data for use by retailers and manufacturers. Shelf images uploaded to Trax’s cloud servers are analyzed by advanced computer-vision algorithms, which generate a monthly analytic dashboard is provided to clients. The software also provides insights into retail trends.

The company was founded by Israelis Bar-El and Dror Feldheim and is headquartered in Singapore. It employs 350 people, 150 of them in Israel.