AP Automation Vendor AvidXchange Closes $225 Million Minority Growth Financing

AvidXchange, a financial technology provider of accounts payable and payment automation, announced that it has completed a $225 million minority growth financing led by Bain Capital Ventures. 

Based in Charlotte, North Carolina, AvidXchange employees 326 people and last year reported revenue of $27.9 million. The company offers integrations with Dynamics AX, GP, NAV, and SL, along with many other accounting and ERP packages.

AvidXchange plans to invest a significant amount of the funding to hire staff to support its rapid client growth, make certain acquisitions, and develop new products to better serve its customers, according to company officials.

"We are thrilled with the investor group that we have assembled for this round as it is a combination of investors who have deep financial technology and payments expertise, as well as robust software and SaaS company knowledge in building multi-billion dollar tech companies," said Michael Praeger, CEO and co-founder of AvidXchange, in a statement.  

Matt Harris, Managing Director at Bain Capital Ventures, said given Bain Capital Ventures focus on financial technology, and high-growth payments companies in particular, AvidXchange had been on its radar for years.

"We view AvidXchange as leading the evolution of accounts payable automation and business-to-business payments across all verticals," Harris said in the statement. "Soon gone are the days of paper checks, manual entry, and lockboxes. Automation is the wave of the future and AvidXchange is the driving force in one of the largest untapped tech sectors - with AvidXchange we see great growth potential," continued Harris.

As part of this transaction, Harris, Brad Feld, co-founder of Foundry Group and Techstars, and Hans Morris, managing partner at Nyca Partners and former president ...