AvidXchange raises $260 million to support continued growth

https://thefintechtimes.com/avidxchange-raises-260-million-to-support-continued-growth/
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AvidXchange, the leading provider of AP and payment
automation solutions, have raised $260 million in funding, adding
to the more than $525 million it has raised prior. This new capital
increases the company’s valuation and provides additional support
and working capital for growth initiatives.

With more than 500,000 suppliers in their network – which is
the largest of its kind –
AvidXchange
processes more than $120 billion in payments for
mid-size businesses annually, far outpacing consumer payments giant
Venmo. The company was recently named to Deloitte’s “Fast
500” for the 6th consecutive year.

B2B payments & AP automation leader kicks off 20th year
with new capital

AvidXchange has seen 35% growth since it’s the last raise,
partnering with the likes of MasterCard
and now 25 financial institutions to integrate onto their banking
channels – AvidXchange is even white-labeled on some of these
channels, showing the amount of trust they foster with their
partners.

This is especially timely given the Millennial effect –
adoption is only going to get faster as more Millennials
mature into leadership positions or accounting roles where they are
working in the weeds of it day-to-day. They’re used to everything
digital, and so businesses are having to catch up to keep the
customer and the workforce happy.


AvidXchange
has raised $260 million in equity capital as part
of the company’s latest financing round. With contributions from
TPG Sixth Street Partners and other leading investors, this brings
total funding to more than $800 million over the company’s
20-year history. The new capital will fuel AvidXchange’s
continued growth and innovation, allowing the company to invest in
its solutions for both buyers and suppliers while reaching more
customers in the middle market.

Michael Praeger, CEO
and Co-Founder of AvidXchange

“More than 60 percent of U.S. businesses still pay bills with
paper checks, accounting for more than $2.7 trillion in
administrative costs annually,” said Michael
Praeger
, CEO and Co-Founder of AvidXchange. “We’re
shaping the future of the B2B payments industry by fundamentally
changing the way businesses pay their bills, providing a single
platform for AP and payments with the largest payments network for
the middle market.”

The funding comes on the heels of a transformational 2019 for
the company, as AvidXchange took several steps to propel growth and
drive the business toward its next phase. In October, the business
launched AvidPay and AvidInvoice for long-term healthcare and
social services and in July, the acquisition of BankTEL Systems
added nearly 2,000 bank customers to its financial services
vertical. The company also hired 175 new team members in 2019,
bringing its total number of employees to more than 1,400 across
seven offices, with plans announced for a headquarters expansion
that will double its footprint and accommodate an additional 1,200
teammates.

TPG Sixth Street Partners has a long-tenured
relationship with AvidXchange and has been an investor since
2015.

“AvidXchange is poised to win with a complete offering of
invoice automation, payment automation and supply chain finance all
in one platform,” said Bo Stanley, Partner and Co-Head of
Capital Solutions at TPG Sixth Street Partners. “Their
comprehensive solutions coupled with the power of the AvidPay
Network gives them all the right tools to lead the market, and we
are proud to be their long-term partner.”

Financial Technology Partners LP and FTP Securities LLC (“FT
Partners”) served as the exclusive financial and strategic
advisor to AvidXchange in this transaction.

 

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AvidXchange raises $260 million to support continued growth

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