A Caerphilly-based software company has secured a £175,000 follow-on investment from the Development Bank of Wales.

X4 Software, which trades as SourceMogul, is based at the Welsh Innovation Centre for Enterprise (Welsh ICE) on Caerphilly Business Park.

The company analyses 20 million products globally each month, with the aim of enabling arbitrage professionals to make better buying decisions.

Arbitrage is the buying and selling of goods and currencies in different markets to take advantage of different prices.

The company has a team of six staff members, with two more expected to join in the near future.

The company was awarded the Global Start-Up of the Year award at the Wales Start-Up Awards in 2016.

Founder Ed Brooks said: “SourceMogul is suitable for everyone, from experienced traders to those who are completely new to online arbitrage, and is aimed at UK and US households looking for new income streams. It suits those with an entrepreneurial appetite and time and a relatively small amount of money to invest in a new business.

“Automating and simplifying the process of sourcing products saves our customers hours, compared to scouring physical or online stores. In fact, Covid-19 has led to a significant increase in demand for the digital platform in the US and UK as the easy-to-use software appeals to users particularly at this time when people are looking for new sources of income online.

“The continued support of the Development Bank of Wales alongside our angel investors means that we’ve got a winning combination of working capital and expertise to guide us with our strategic development as demand for SourceMogul continues to increase.”

Investor David James said: “X4 has got a really exciting product that enables users to quickly and easily identify trends, gaps, price fluctuations and seize opportunities that might otherwise pass.

“The global potential is huge and I’ve got every confidence that the combined experience and ambition of the team means that this is a company with a really exciting future. I’m really grateful to Angels Invest Wales for making the introduction as this is a fantastic opportunity to get involved and be part of the journey.”

Alexander Leigh of the Development Bank of Wales said: “Our investment to date now totals £425,000. This has helped to fund the development of SourceMogul and launch global marketing campaigns.

“The support of the angel investors is testament to the huge potential of this technology and their belief in Ed’s ability to quickly scale this innovative digital platform globally despite the economic uncertainty at this time.

“The investors are highly respected with technology expertise.”