US unicorn AvidXchange lands $128m
AvidXchange, the US-based business-to-business (B2B) payments unicorn, has raised an additional $128 million to add to its $260 million round it closed in January, Reuters reports.
The fintech, already backed by PayPal co-founder Peter Thiel and Mastercard, provides automated payments software to small and medium-sized businesses (SMBs), many of which will be suffering in the current coronavirus outbreak.
AvidXchange’s additional funding saw participation from Sixth Street Partners – which led the January fundraising – alongside Mastercard, Lone Pine Capital and Schonfeld Strategic Advisors.
The fintech has not revealed its new valuation, but a Reuters source says AvidXchange is now worth roughly $2 billion.
Despite the economic struggle many brick and mortar businesses are facing in the current climate, CEO and co-founder Michael Praeger says the boost in e-commerce and drive for businesses to go digital is positive for AvidXchange.
“The value proposition that we’ve been evangelizing for years, an event like COVID-19 is becoming the catalyst to change an industry,” Praeger tells Reuters.
“We had a record first quarter as companies recognised that, in the work-from-home environment, we can’t get our bills paid if our accounts payables team is at home, because the only way to cut a paper check is being in the office.”
Praeger says the funding will help its immediate operations, as well as potentially go towards “opportunistic acquisitions” once the market begins to recover.