Automated business payments processing firm AvidXchange is launching a new fundraising round that could give the firm a $2 billion valuation, The New York Times reported on Monday (Dec. 9), citing sources.
This latest fundraising could top $300 million. AvidXchange previously raised $300 million in 2017 at a $1.4 billion valuation led by PayPal Co-founder Peter Thiel and Mastercard. Investment bank Financial Technology Partners is advising AvidXchange on this fundraising round, according to sources.
Founded in 2000 by CEO Michael Praeger, the Charlotte, North Carolina-based firm provides software that automates payments, invoicing and accounting for small and mid-sized businesses (SMBs).
AvidXchange processed more than $120 billion of invoices and payments across its network of more than 500,000 suppliers in 2018, transforming the way 5,500 customers in North America pay their bills, according to its website. The firm has 1,300 employees across offices in seven states and is distinguished as a global FinTech unicorn.
Revenue growth in the business payments sector is expected to grow by around 5.6 percent through 2028, according to Boston Consulting Group.
AvidXchange has ranked among the fastest-growing companies in North America on Deloitte’s Technology Fast 500 for the past six years, the company said in a blog post last month.
In order to be eligible for Technology Fast 500 recognition, companies must have current-year operating revenues of at least $5 million and own proprietary intellectual property or technology that is sold to customers in products that contribute to a majority of the company’s operating revenues.
The company announced on Thursday (Dec. 5) that it is integrating AvidPay into its BankTEL product suite, which is designed for financial institutions (FIs) to manage accounting and expenses. Nashville community bank Studio Bank was the first FI to adopt the AvidPay solution.
The integration means banking customers will gain access to the AvidPay network for streamlined accounts payable (AP). Earlier this year, AvidXchange acquired BankTEL to connect FIs to a range of automated financial solutions.