BidX1 eyes growth with €10m injection from new backers

Digital property investment platform BidX1 has secured €10m (£8.6m) in strategic growth investment and has acquired an online platform for the transaction of non-performing loans, in deals with two new shareholders. The Dublin-based company said doValue, which provides credit management and real estate services for banks and investors in southern Europe, and Oliver Wyman, a global management consulting firm, will both acquire minority equity stakes in BidX1. They will join existing investor Pollen Street Capital, the London-based private equity firm, and BidX1’s founder, Stephen McCarthy, as shareholders in the company. Pollen Street made a strategic investment in BidX1 in 2018 to accelerate the platform’s international expansion. Both Pollen Street and McCarthy maintain majority stakes in the business. BidX1 said the announcement marked the beginning of another phase of strategic growth, targeting expansion of its geographical footprint and product offering. BidX1 currently operates across five markets – the UK, Ireland, South Africa, Spain and Cyprus – and has sold more than 10,000 properties to date, with a total value of more than €2.5bn. doValue will acquire a 15% equity stake for a €10m capital injection in the company. Listed on the Italian stock exchange, doValue has €160bn of assets under management in Italy, Spain and Portugal, Greece and Cyprus. Through this investment, doValue will enter a strategic partnership with BidX1 with the aim of supporting BidX1’s growth in southern Europe as an independent platform. Oliver Wyman will also make an equity investment in the company, acquiring a minority stake of approximately 5%. As part of the agreement, BidX1 will acquire proprietary technology developed by Oliver Wyman: an online platform for the transaction of non-performing loans. Daniele Della Seta, head of M&A and strategic finance at doValue, and Vicente Vázquez Bouza, partner in corporate finance and restructuring at Oliver Wyman, will join BidX1’s board of directors. McCarthy said the 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,” he added. Della Seta 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. We have been very impressed by the quality of BidX1’s management team and we are confident that they will succeed in disrupting the way real estate transactions are carried out in Europe, positively contributing to doValue Group’s operations.” Vázquez Bouza added: “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.” James Scott, partner at Pollen Street Capital, said: “We are thrilled that doValue and Oliver Wyman will be joining forces with BidX1 as strategic investors. As well as the deep expertise of their teams, BidX1 will also benefit from the strategic partnership with doValue and the addition of Oliver Wyman’s NPL platform, which will complement BidX1’s market-leading property transaction technology.”   To send feedback, e-mail julia.cahill@eg.co.uk or tweet @EGJuliaC or @EGPropertyNews Image from BidX1