AvidXchange, an accounts payable (AP) and payment automation company, has secured $260m in a new financing round to support growth.
The funding, provided by multiple investors including TPG Sixth Street Partners, brings the company’s total funds to over $800m.
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The company will use the financing to invest in its buyer and supplier solutions. The company also plans to expand its customer base in the middle market.
AvidXchange CEO and co-founder Michael Praeger said: “More than 60% 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.”
AvidXchange operations
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By GlobalDataFounded in 2000, AvidXchange focuses on automating invoice and payment processes. The company processes 9.5 million payments per year across more than 500,000 suppliers.
The company has operations at seven locations in the US with nearly 1,400 employees. It is planning an expansion to increase its footprint and employ additional 1,200 people.
TPG Sixth Street Partners partner and co-head of Capital Solutions Bo Stanley said: “AvidXchange is poised 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.”
In July last year, AvidXchange acquired BankTEL Systems, which added approximately 2,000 bank customers. In October, the company introduced AvidPay and AvidInvoice solutions for healthcare clients.
