A Caerphilly tech firm, whose software sources lowest price goods for Amazon traders who then sell them on for a profit, is focused on accelerated user growth after closing its latest investment round.
Amazon arbitrage firm X4 Software (which trades as SourceMogul), is seeing increasing demand for its digital platform which automates the search for products either online or by uploading wholesale lists. It analyses 20 million products each month to identify where price gaps exist, with users then selling them via Amazon for a margin.
There are 2.5 million Amazon sellers worldwide with X4 Software now targeting to sign up even more of them to its sourcing platform.
It generates revenues by charging a subscription fee, currently £57 a month, but with discounts for annul plans.
Its latest investment round was led by the Development Bank of Wales – which to date has invested nearly £500,000.
X4 Software’s founder Ed Brooks said: “Our Amazon arbitrage platform is a great option for those entrepreneurial individuals who are looking to start a business from home. With online sales forecast to skyrocket during these times, setting up an Amazon seller account gives new sellers instant access to the largest marketplace in the world.
“We want to bring our customers the very best online arbitrage tools. We’re a mix of Wales-based business people, coders and designers that love building genuinely useful products to help people with their Amazon journey.
“Our customers range from those who enjoy making a little bit of additional second income, to those who are now employing teams of people to support their arbitrage business.
“Our goal is to make online arbitrage more accessible to those looking for alternatives to traditional income streams. Automating and simplifying the process of sourcing products, saves our customer hours compared to scouring physical or onlines stores.
He added: “We analysis 20 million products every month, to identify where price gaps exist. In practice this just means that we search at scale for products, say a pair of headphones which can be purchased for £12 that could be sold on Amazon for £30.”
The company is currently recruiting for software development and data experts to support its growth plans.
Alexander Leigh of the Development Bank of Wales said: “We’ve been big supporters of X4 Software since our first investment in the business in 2017 and have worked closely with the management team to help grow the platform and attract further investment from our network of Angel investors.
“The latest round of funding takes our total investment to date to £425,000 and we are particularly pleased to be working with Angels Invest Wales who have introduced some great co-investors alongside us.”