The company has raised over $800 million in its two-decade history, with contributions from investors like TPG Sixth Street Partners and others.
The company is going to use the capital to expand and grow, as well as invest in helpful solutions for suppliers and buyers, with special attention being put toward 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. “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.”
Last year was transformational for the company, and it moved toward pushing growth and driving its business into a bigger phase.
Also last year, AvidXchange hired 175 new employees, which brings its total number of workers up to 1,400 through seven offices. The company is planning to expand its headquarters to double its footprint and make room for another 1,200 employees.
TPG Sixth Street Partners and AvidXchange have had a relationship 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.”