AvidXchange Closes Funding Round With $127M

North Carolina-based AvidXchange has raised $127 million after a funding round, according to a U.S. Security and Exchange Commission filing.

The accounts payable (AP) FinTech pulled the funds from a total of 52 investors across 12 states, offering equity, options and security in exchange.

The company raised $260 million in January with contributions from TPG Sixth Street Partners and others.

AvidXchange CEO and Co-Founder Michael Praeger said in January that the idea for the company is based in moving the world past old forms of paper-based payment. He said the company provides a single platform for B2B payments, touting it as the “largest payments network for a middle market.” The fact that over 60 percent of businesses still used paper checks was a reason administrative costs usually shot through the roof, he said.

The platform purports to offer invoice and payment automation, along with a supply chain platform, all on the same app.

One of the signers of the latest filing was Bo Stanley, partner with TPG Sixth Street Partners. Stanley said AvidXchange is a strong company due to its comprehensive services and the AvidPay Network.

AvidXchange last year hired 175 new workers, bringing the company total to 1,400, and the company commemorated that by planning to expand its headquarters to accommodate the larger workforce. The company also acquired BankTEL Systems last year and used that to launch AvidPay and AvidInvoice.

Recently, the FinTech found that, during the coronavirus pandemic, many businesses lacked the capabilities to let people work from home.

In its survey of 500 U.S. companies, AvidXchange found that just over half of them had the correct capabilities to pay all their employees to work from home. The rest, according to the survey, just didn’t have the infrastructure to keep payments rolling on time, and would’ve had to pay late if they changed the business model to allow working from home.