Michael Praeger, CEO
Another day, another big raise by a SaaS company. This time in a state that is increasing its profile as a startup hub as of late.
Charlotte, N.C.-based AvidXchange, a provider of accounts payable (AP) and payment automation solutions for the middle market, announced this afternoon it has raised $260 million in funding. TPG Sixth Street Partners and other unnamed investors participated in the financing, which brings the company’s total venture and private equity raised since its inception in 2000 to more than $800 million. Previous backers include MasterCard, Bain Capital Ventures and Founders Fund. The company is already valued at over $1 billion but it would not disclose at which valuation this round was raised. However, Reuters reported in December that AvidXchange’s next round could value the company at around $2 billion. “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,” says Michael Praeger, the CEO and co-founder of AvidXchange.
The year of 2019 was a busy one for AvidXchange. Last July, the company acquired BankTEL Systems, adding nearly 2,000 bank customers. And in October, the company launched new lines – AvidPay and AvidInvoice – to serve the long-term healthcare and social services sectors. Also during the year it hired 175 people, raising its headcount to more than 1,400 across seven offices. In a statement, the company said it is currently planning “a headquarters expansion that will double its footprint and accommodate an additional 1,200 teammates.”
We’re shaping the future of the B2B payments industry by fundamentally changing the way businesses pay their bills
AvidXchange is the industry leader in automating invoice and payment processes for mid-market businesses. Founded in the year 2000, AvidXchange processes 9.5 million payments annually across its network of more than 500,000 suppliers, transforming the way 5,500 customers in North America pay their bills. AvidXchange is distinguished as a fintech unicorn and one of the fastest growing technology companies in the U.S. with 1,400 employees in seven office locations. At its core, AvidXchange offers accounts payable automation services, with AP automation offering to eliminate the outdated, manual processes that waste time, lead to fraud, result in late payments and lead to painful audits. AvidXchange’s AvidSuiteprovides enhanced electronic invoice management capabilities including invoice dispute management, configurable invoice approval work-flow routing, and accounts payable integrations to certain MRI, Yardi Systems, The Realm, and other real estate property management software applications.
AvidSuite introduces new collaboration tools that allow real estate firms and vendors to work more efficiently with each other. AvidXchange clients can provide vendors with an interface to submit electronic invoices for faster approval processing and can view the invoice status for faster payment. Further, AvidSuite streamlines the way real estate firms manage product spending and operating costs for the properties they manage. AvidXchange says that AvidSuite 4.0 makes it possible for electronic invoices to circulate through an organization just like paper invoices, but without the clutter and with a fraction of the effort.
As of August 2019, AvidXchange had more than 5,500 clients in North America as its software generates a secure, MICR check with automated, encrypted signatures on the client’s behalf. After payment is approved, the check is routed to their vendor’s verified bank account. AvidXchange’s payment forms—ACH, EFT, and wire transfer—cut the cost of checks, time, and hassle. Further, its Create-A-Check offers protection with payment approval and Positive Pay to eliminate fraud and suspicion.