Independent forecasts suggest the company could be worth £47m within 18 months and a stock market flotation is planned in 2001.
CarXchange wants to be the definitive used car database for the UK motor trade. It offers access to live data about used car stock and has attracted more than 70 clients since launch in March.
These include car rental companies such as Hertz and Thrifty plus dealer groups including Nidd Vale Motors, Dovercourt, Harratt Group and Morrison Motors.
Almost 5,000 cars are listed on the subscription-only website, and the number is expected to grow rapidly. If CarXchange meets its target, there will be 700 dealers, 720 groups and 40 wholesalers acquiring and disposing of vehicles within 12 months of launch.
CarXchange chairman David Rance, previously customer care director of Cellnet, said: “Our database is an active business tool, not a dumping ground for outdated information. No vehicle can remain for more than seven days without being reactivated.”