- Payment automation solutions company AvidXchange announced it has raised an additional $128 million in equity capital
AvidXchange, a leading provider of accounts payable (AP) and payment automation solutions for the middle market, announced it has raised an additional $128 million in equity capital. This financing effort was oversubscribed with a total of over $388 million raised and includes AvidXchange’s previously announced closing of $260 million in equity financing earlier this year.
The contributing investors represent a diverse cohort of the foremost capital management firms, including Lone Pine Capital, Schonfeld Strategic Advisors, Pivot Investment Partners, Mastercard, Sixth Street Partners, and Neuberger Berman on behalf of clients.
AvidXchange plans to use the new capital to support strategic growth initiatives and continued innovation, helping both buyers and suppliers automate their AP and payment processes. And the company’s rapid growth has been fueled by the adoption of its leading AP automation solution, a single SaaS-based platform that allows businesses to gain efficiency and visibility into payments by eliminating the paper invoice and paper check.
This solution also offers multiple e-payment options through the AvidPay Network of more than 600,000 suppliers, the largest payments network for the middle market.
AvidXchange’s solutions manage the full invoice to payment process so businesses can receive invoices and pay bills at any time, from any location. And with a dedicated supplier services team, AvidXchange also removes the burden of manual payment tasks from internal AP functions, taking on the responsibility of payment fulfillment and maintaining relationships with suppliers so customers can focus on more strategic initiatives.
Launched in 2000, AvidXchange processes over $140 billion transactions annually across its network of over 600,000 suppliers, transforming the way 6,000 customers in North America pay their bills.
“With only 40 percent of U.S. businesses automating their accounts payable processes, we continue to solve a real problem for companies that still rely on paper invoices and checks, fundamentally changing the way they pay their bills. This has become even more evident as we see businesses implementing continuity plans and shifting to work from home models, making automation essential to support mission-critical processes and keep operations running.”
-Michael Praeger, Co-Founder and Chief Executive Officer at AvidXchange
“We recognized the impact that AvidXchange could have on the B2B payments market prior to our initial investment in 2016 and are doubling down on our partnership as the adoption of automation technology continues to accelerate.”
-Dinkar Jetley, Co-Founder and Partner, Pivot Investment Partners
“AP automation is one of the most exciting spaces within B2B payments given the potential cost savings and increased efficiency for buyers and suppliers. We see AvidXchange as perhaps the strongest emerging platform in this space and are excited to partner with the team on their journey to further drive long term value creation.”
-Charles Kantor, Senior Portfolio Manager, Neuberger Berman
“AvidXchange has experienced tremendous growth due to the strength of its supplier network and continued expansion into new verticals. We look forward to our partnership, as both buyer and supplier customers see the value AvidXchange brings to their businesses in leveraging the preeminent payment network for the middle market.”
-David Craver, Portfolio Manager and Managing Director, Lone Pine Capital