Tokyo-based X Mile, which operates a workforce and operations platform for Japan’s logistics, construction, and manufacturing sectors, said on August 4 that it raised 3.2 billion yen (US$20 million) in a series C round led by Vertex Growth.

Existing and new investors, including ALPHA and University of Tokyo Edge Capital Partners (UTEC), also joined, bringing X Mile’s total funding to 7 billion yen (US$44 million).

X Mile said it will use the capital to expand its “vertical AI” products for non-desk industries and pursue acquisitions.

Founded in 2019, X Mile began as a staffing platform and later expanded into software and AI tools, along with mergers and acquisitions advisory and vehicle sales.

The company said annual recurring revenue from its digital transformation (DX) platform for transportation and logistics operators grew more than 90% year on year.

X Mile operates in sectors affected by Japan’s logistics labor crunch.

One report projected a 14.2% transport-capacity shortfall in 2024 after tighter driver work-hour rules took effect on April 1, 2024, alongside government support for logistics digital transformation.

Japan is also still early in AI adoption, with only 26% of companies using AI in at least one business function, according to research.

🔗 Source: X Mile Inc.