Pollen Street Capital is to make a ‘strategic investment’ in Irish online property platform BidX1, which was established by Steve McCarthy in 2011 to facilitate disposals of distressed properties.
BidX1 enables users to buy or sell property online from anywhere in the world, on any device. The firm believed that technology could improve the core processes involved in buying and selling property.
When it launched, McCarthy (pictured) said BidX1 was “challenging the traditional methods of sale and debunking the consensus that digitisation was unsuitable for the property industry due to the nature and value of the assets involved”.
Pollen Street partner James Scott commented: “At Pollen Street Capital we seek out specialist entrepreneurial management teams whose businesses have strong growth potential – and Stephen McCarthy, Mike Murphy and the rest of the BidX1 team fit that bill.
“Digital auctions are set to transform how institutional and retail property is bought and sold, not just in the United Kingdom but around the world. The transformation will be profound, as vendors increasingly understand the efficiency of the process and buyers embrace the transparency that is inherent as well. We believe that BidX1 is well positioned to be a successful leader in this market transformation.”
In Association with
BIDX1 Auction Ltd booked a net profit of €870,000 in 2016 and had a year-end net worth of €1,958,000 on the back of €200 called up share capital.
With BidX1 online auctions, bids are logged and displayed on a website, allowing bidders to clearly assess levels of competition. The company says that institutional managers seeking full transparency in their sales have been at the forefront in utilising its digital model.
Growth Strategy
According to McCarthy:“We have a clear organic growth strategy for the business and we will also consider joint ventures and the right acquisitions to accelerate our plans.
“We are a complementary platform for more traditional property agents and auction businesses who want to expand their market reach for their clients and customers. Alongside further expansion in the UK, we’re targeting Southern Europe and South Africa, where many of our core clients already operate.
“Pollen Street’s commitment is an endorsement of our core business proposition – driving change in the property industry through digitisation and innovation – and will facilitate the acceleration of our growth plans which will inevitably include integrating more financial services in to the core platform.”
He added that BidX1 has sold more than 8,000 properties since establishment, valued at €1.4 billion. Over the past 18 months, bidders from 24 countries from New Zealand to the United States have bought 2,000 assets using the platform.
