AvidXchange raised additional $128 million in fundraising

The B2B payment processing firm AvidXchange Inc on Thursday unveiled that it had supplemented $128 million to its &260 million funding round it concluded in January.

Having PayPal Holdings Inc and Mastercard Inc co-founder Peter Thiel among its investors, AvidXchange facilitates small and medium sized businesses in their operations by providing software to automate their invoicing, accounting and payments processes. Many of those businesses have got a harder hit from virus outbreak which knocked most of the economy out.

The developments in e-commerce and efforts towards digitalization of more and more of the business operations are positive indicators for the Charlotte, North Carolina-based company, said Michael Praeger, company’s Chief Executive and Co-founder.

For years, we remained evangelizing about a strong plan and incident like coronavirus outbreak become a driving force to those efforts, Praeger told Reuters.

Companies have now acknowledged that in work-from-home scenario, they would not be able to pay bills as their account payable team would be stuck at home whose presence in the office is must to issue a paper check, and that recognition drove us to post a record first quarter, he added.

Mastercard, Schonfeld Strategic Advisors, Lone Pine Capital and Sixth Street Partners were among the half-dozen investors participated in the funding with Sixth Street Partners as an investor who also led the January funding round.

Praeger refused to disclose the company’s valuation, but Reuter, citing a source familiar with matter, reported AvidXchange now worth around $2 billion after raising the new investments.

Including “opportunistic acquisitions”, AvidXchange will be utilizing the funds investing in its existing business with a chance to go for “opportunistic acquisitions”, said Praeger, but cautioned that it will not likely to be happening in coming month in the face of current market volatility.

Although company is intending going public, but Praeger said that it was not in 2020 even before virus outbreak.