AvidXchange, the US-based provider of accounts payable (AP) and payment automation solutions, has raised $128 million.
The funding round included participation from Lone Pine Capital, Schonfeld Strategic Advisors, Pivot Investment Partners, Mastercard, Sixth Street Partners and Neuberger Berman on behalf of its clients.
The fundraising marks AvidXchange’s first investments from Lone Pine Capital, Neuberger Berman and Schonfeld Strategic Advisors, while Pivot Investment Partners, Sixth Street Partners and Mastercard continue as long-term investors.
AvidXchange manages the full invoice to payment process so businesses can receive invoices and pay bills at any time. The company’s growth has been fuelled 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,” said Michael Praeger, co-founder and CEO 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
“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.”