B2B Payments Firm AvidXchange Could Hit $7 Billion Valuation In IPO

The business-to-business (B2B) payments firm AvidXchange is eyeing an initial public offering (IPO) that could give the North Carolina company a valuation topping $7 billion, Reuters reported on Tuesday (March 23), citing sources. 

Backed by Mastercard and PayPal Co-founder Peter Thiel, AvidXchange has tapped Goldman Sachs, J.P. Morgan Chase, Bank of America and Barclays to prepare the IPO, sources said. The company, which was founded just over two decades ago, offers software that automates payments, invoicing, and accounting for small and mid-sized businesses (SMBs).

AvidXchange saw a big uptick in business as the COVID-19 pandemic gripped the world. Companies dependent on paper processes had to quickly pivot to accommodate a digital-first approach. 

The Charlotte, North Carolina firm is looking for a public listing in the second quarter of this year, according to the sources. An IPO could value the company between $5 and $7 billion, and high demand from investors could potentially give the firm a valuation high of $10 billion. The company was valued at roughly $2 billion as of its most recent fundraising in April 2020.

Every year, AvidXchange handles roughly 12 million payments totaling over $140 billion, according to its website.

In a PYMNTS interview in April 2020, Joel Wilhite, CFO of AvidXchange, said it’s critical that companies know how to launch business continuity plans in order to survive in uncertain times. He added that technology has made it much easier for businesses to pivot. A continuity plan is an exercise that considers multiple unexpected scenarios and the best ways to handle them.