Up and coming accounts payable and payment automation company AvidXchange, announced new funding to further its mission to make counting money easier for middle market businesses.
The Charlotte, NC based company raised $260 million in equity capital as part of the company’s latest funding round. TPG Sixth Street Partners, a longstanding investor in AvidXchange since 2015, was among the investors in this new round. It’s total capital fundraise total to date is $800 million since its 2000 launch. It has already surpassed $1 billion in valuation.
“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, in a statement announcing the funding deal. “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.”
AvidXchange counts investor Peter Thiel, Mastercard and PayPal Holdings as early investors.
2019 was a big year for AvidXchange, as it launched and invested in several products to help grow its business. It launched AvidPay and AvidInvoice for long-term healthcare and social serivices in October, and purchased BankTEL Systems in July, which added 2,000 bank customers to its financial services vertical. AvidXchange added 175 new staff last year, with plans to add more thanks to a new headquarters expansion that will add 1,200 more staffers.
“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.”
AvidXchange plans to use the new funding to boost its continued growth and innovation.