AvidXchange, the leading provider of accounts payable (AP) and payment automation solutions for the middle market, today announced it has raised $260 million in equity capital as part of the company's latest financing round.
With contributions from TPG Sixth Street Partners and other leading investors, this brings total funding to more than $800 million over the company's 20-year history. The new capital will fuel AvidXchange's continued growth and innovation, allowing the company to invest in its solutions for both buyers and suppliers while reaching more customers in the middle market.
"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. "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 funding comes on the heels of a transformational 2019 for the company, as AvidXchange took several steps to propel growth and drive the business toward its next phase. In October, the business launched AvidPay and AvidInvoice for long-term healthcare and social services and in July, the acquisition of BankTEL Systems added nearly 2,000 bank customers to its financial services vertical. The company also hired 175 new teammates in 2019, bringing its total number of employees to more than 1,400 across seven offices, with plans announced for a headquarters expansion that will double its footprint and accommodate an additional 1,200 teammates.
TPG Sixth Street Partners has a long-tenured relationship with AvidXchange and has been an investor since 2015.
"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."
Financial Technology Partners LP and FTP Securities LLC ("FT Partners") served as the exclusive financial and strategic advisor to AvidXchange in this transaction.