CHARLOTTE – AvidXchange has raised another $260 million in investment capital, likely pushing the company to a $2 billion valuation.
Executives weren’t talking about the valuation based on private equity standards Friday when the rumored funding was announced. Sources told Reuters in December that the fintech firm is seeking to raise “at least 300 million dollars” from investors.
If so, the value of the firm would top $2 billion, Reuters noted at the time.
And its CEO sees plenty of room for more growth which the funding will be used to accelerate.
“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, its CEO and co-founder. “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 noted that it has now raised some $800 million from investors. TPG Sixth Street Partners was among the investors in the latest round.
“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, in a statement.
“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.”
The first half of the new funding was disclosed in an SEC filing earlier this month.
The fast-growing firm is in the process of doubling the size of its headquarters in Charlotte.
Last July, the fintech software provider unveiled plans for its new expanded headquarters, a 201,000 square-foot facility on the AvidXchange Music Factory campus.
The second building will be, in footprint, an exact replica of the first, completed in 2017.
And it’s big, with room for an additional 1,200 employees.
“The expansion of our headquarters signifies more than being a rapidly-growing fintech company,” Michael Praeger, CEO and Co-Founder of AvidXchange, said in a statement.
“It represents the mark Charlotte is making as a center for innovation.”
Launched 20 years ago in the back of a Charlotte coffee shop with five employees, AvidXChange has experienced exponential growth in recent years – growing at a rate of about 45 percent per year.
Now it’s one of the country’s largest B2B payment networks. In 2017, its value soared past $1 billion, thus becoming a “unicorn” according to private equity standards, when it closed on $300 million in financing.
In 2019 the company launched a number of new services, added nearly 2,000 banking customers, and acquired BankTEL Systems.
It added 175 employees as well, boosting headcount to more than 1,400.