Accounts payable and payment automation company AvidXchange has collected $260m in a funding round.
Last year, it was reported the FinTech was looking to close a funding round which would value it at $2bn. It is unclear whether the company has achieved this valuation. The company initially became a unicorn in 2017 after it secured a $300m investment at a $1.4bn valuation.
TPG Sixth Street Partners joined the investment round, along with other, unnamed backers.
Capital from the round has been earmarked for fuelling growth and innovation of AvidXchange. Additionally, the company hopes to invest into its technology capabilities.
This investment has come after a period of growth for the FinTech which saw it hire 175 more staff in 2019 – across its seven offices, it now has 1,400 employees. Plans are to largely expand its headquarters to accommodate a further 1,200 team members.
AvidXchange is a US-based accounts payable system which helps mid-market businesses automate invoice and payment processes. Servicing banking and real estate industries, clients can ease procurement, invoice, payments, supplier management and cash flow processes.
AvidXchange CEO and co-founder Michael Praeger said, “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.
“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.”
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