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.
“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.