AvidXchange targets $2 billion valuation in funding round: sources

This post was originally published on this site

© Reuters. AvidXchange targets $2 billion valuation in funding round: sources© Reuters. AvidXchange targets $2 billion valuation in funding round: sources

By David French

(Reuters) – Business payments processing firm AvidXchange Inc, whose investors include Mastercard Inc (N:) and Peter Thiel, the co-founder of PayPal Holdings Inc (O:), has launched a new private fundraising round that could value it at around $2 billion, people familiar with the matter said on Sunday.

AvidXchange and some of its peers, including Stripe Inc, have benefited from strong corporate demand for the automation of payments and invoices, which can save businesses money. Stripe reached a $35 billion valuation in a fundraising round in September.

AvidXchange’s latest fundraising could bring in at least $300 million from investors, according to two of the sources, who spoke on condition of anonymity as the information is confidential.

AvidXchange is being advised on the fundraising by investment bank Financial Technology Partners LP, the sources added.

A spokesman for AvidXchange declined to comment.

Charlotte, North Carolina-based AvidXchange provides software that automates payments, invoicing and accounting for small and mid-sized businesses. Founded in 2000, it processed more than $120 billion of invoices and payments in 2018, and has 1,300 employees spread across offices in seven U.S. states, according to its website.

AvidXchange previously raised $300 million in 2017 at a $1.4 billion valuation.

The business payments sector is expected to grow by around 5.6% in revenue each year until 2028, according to a September report from Boston Consulting Group.

Another financial technology startup which automates business payments and invoices, Bill.com, is set to price its initial public offering this week, targeting a valuation of up to $1.25 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.