AvidXchange, the US-based invoicing and accounts payable solutions company, has raised $260m in a new equity funding round.
The company said it plans to use the funds to further its sales, marketing, product development and engineering teams. It will invest in solutions for buyers and suppliers as it continues to go after customers in the middle market.
This latest funding round, with contributions from TPG Sixth Street Partners and other leading investors, brings AvidXchange’s total funding to more than $800 million over 20 years. TPG Sixth Street Partners has a long-tenured relationship with AvidXchange and has been an investor since 2015.
Michael Praeger, CEO and Co-Founder of AvidXchange, said: “More than 60 percent of US businesses still pay bills with paper checks, accounting for more than $2.7 trillion in administrative costs annually.
“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.”
The equity boost follows a transformational 2019 for AvidXchange. In the fall, the company launched two new products, AvidPay and AvidInvoice for long-term healthcare and social services, and in July it acquired BankTEL Systems and gained nearly 2,000 bank customers to its financial services arm.
The company is looking to expand its headquarters in Charlotte, North Carolina, and has plans to hire 1200 new members of staff to add to its existing 1400-strong workforce across the seven sites where it operates.
The deal comes hot on the heels of that of another company that’s looking to automate payments for large conglomerates. On January 7, HighRadius, which offers automated payments processes for Danone and Johnson & Johnson, among many others, achieved unicorn status when it announced it had secured $125m in a Series B investment round.
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