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B2B Payments & AP Automation Leader AvidXchange Raises $260 Million to Support Continued Growth

B2B Payments & AP Automation Leader AvidXchange Raises $260 Million to Support Continued Growth

AvidXchange is a renowned name in the field of Automated Invoice Management and Bill Payment software. The company recently announced that it had raised $260 million in equity capital its latest financing round. Founded in 2000, the company has received an estimate of over $800 million in total funding till date. The latest round was led by TPG Sixth Street Partners and various other leading investors. Financial Technology Partners LP and FTP Securities LLC (“FT Partners”) served as the exclusive financial and strategic advisor to AvidXchange in this funding.

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AvidXchange plans to invest the funding obtained towards its mission of continued growth and innovation, in building solutions for both buyers and suppliers. This will parallely increase the reach of its products to added customers in the middle market. Michael Praeger, CEO and Co-Founder of AvidXchange said that over 60% of U.S. businesses still pay bills with paper checks. This accounts for more than $2.7 trillion in administrative costs annually. He added that AvidXchange is trying to shape the future of B2B payments industry by optimizing the process of bill payments by businesses. This is being done by providing them with a single platform for Accounts Payable and payments with the largest payments network for the middle market.

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As the B2B payments & AP automation leader starts 2020 with new capital, 2019 was also a major transformation one for AvidXchange. While the acquisition of BankTEL Systems in July added around 2,000 bank customers to its financial services vertical, the launch of AvidPay and AvidInvoice for long-term healthcare and social services in October further strengthened its position. The company also hired 175 staff, taking the total number of employees to 1,400. Near-future plans of headquarter extension will add a further of 1,200 employees to the workforce.

Bo Stanley, Partner and Co-Head of Capital Solutions at TPG Sixth Street Partners said that AvidXchange was set to win with a complete offering of invoice automation, payment automation and supply chain finance all in one platform.”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,” Bo added.

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