AvidXchange, a provider of accounts payable (AP) and payment automation solutions for the middle market, raised $260 million in equity capital as part of the company’s latest financing round.
With contributions from TPG Sixth Street Partners and other investors, this latest round brings the company’s total funding to date to more than $800 million.
The company plans to use the new funds to accelerate growth and invest in its solutions for both buyers and suppliers while reaching more customers in the middle market.
According to the company, its invoice and payment automation solution for mid-market businesses processes 9.5 million payments annually across its network of more than 500,000 suppliers, serving 5,500 customers in North America.
“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.”
Financial Technology Partners and FTP Securities served as the exclusive financial and strategic advisor to AvidXchange in this transaction.