Payment automation solutions company AvidXchange announced this week it added $128 million to its Series F funding round. When included with the $260 million the company raised earlier this year, the oversubscribed round tops $388 million.
The round includes funds from new investors Lone Pine Capital, Schonfeld Strategic Advisors, and clients of Neuberger Berman. Existing investors, including Pivot Investment Partners, Mastercard, and Sixth Street Partners also participated.
AvidXchange will use the funds to fuel strategic growth initiatives and innovation.
“With only 40 percent of U.S. businesses automating their accounts payable processes, we continue to solve a real problem for companies that still rely on paper invoices and checks, fundamentally changing the way they pay their bills” said AvidXchange Co-founder and CEO Michael Praeger. “This has become even more evident as we see businesses implementing continuity plans and shifting to work from home models, making automation essential to support mission critical processes and keep operations running.”
AvidXchange offers solutions to help businesses manage the entire payments process– from invoice to payment– in a completely digital manner. The firm also facilitates payment fulfillment and manages supplier relationships to help companies focus on their business.
AvidXchange’s SaaS-based technology solves a huge pain point for U.S. businesses, as a full 60% of them still pay bills with paper checks.
While there is no word on an updated valuation for AvidXchange, the company was thought to be valued at $2 billion in January of this year.