AvidXchange secures additional $128 million in funding, raising a total of $388 million in latest financing
B2B leader fuels disruption of traditional accounts payable industry and e-payment adoption
CHARLOTTE, N.C., April 23, 2020 /PRNewswire/ -- AvidXchange, the leading provider of accounts payable (AP) and payment automation solutions for the middle market, today announced it has raised an additional $128 million in equity capital. This latest financing effort was oversubscribed with a total of more than $388 million raised and includes AvidXchange's previously announced closing of $260 million in equity financing earlier this year. 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 will use the new capital to support strategic growth initiatives and continued innovation, helping both buyers and suppliers automate their AP and payments processes. 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. The 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.
"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" said Michael Praeger, Co-Founder and Chief Executive Officer at AvidXchange. "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."
AvidXchange solutions manage the full invoice to payment process so businesses can receive invoices and pay bills at any time, from any location. 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.
This marks AvidXchange's first investments from Lone Pine Capital, Neuberger Berman and Schonfeld Strategic Advisors, while Pivot Investment Partners, Sixth Street Partners and Mastercard have long-tenured relationships as investors with the company.
"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," said 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," said Charles Kantor, Senior Portfolio Manager, Neuberger Berman. "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."
"AvidXchange has experienced tremendous growth due to the strength of its supplier network and continued expansion into new verticals," said David Craver, Portfolio Manager and Managing Director, Lone Pine Capital. "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."
Financial Technology Partners LP and FTP Securities LLC ("FT Partners") served as the exclusive financial and strategic advisor to AvidXchange in this transaction.
About AvidXchange™
AvidXchange is the industry leader in automating invoice and payment processes for mid-market businesses. Founded in the year 2000, AvidXchange processes over $140 billion transactions annually across its network of more than 600,000 suppliers, transforming the way 6,000 customers in North America pay their bills. AvidXchange is distinguished as a global fintech unicorn and one of the fastest growing technology companies in the U.S. with 1,500 employees supporting customers across seven office locations. For more information, visit www.AvidXchange.com.
SOURCE AvidXchange
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