AvidXchange launches $300m private fundraising round which could reach $2bn valuation

Written by Ruby Hinchliffe
10th December 2019

AvidXchange, the business to business (B2B) payment network which claims to be the largest of its kind in the US, has launched a new private fundraising round which could value the company at around $2 billion, according to Reuters‘ sources.

In 2017, the payment processor reached a $1.4 billion valuation

With an investor armoury which includes Mastercard and PayPal co-founder Peter Thiel, two anonymous sources say the payment processing firm could bring in at least $300 million from investors to reach this valuation.

Financial Technology Partners LP is advising the North Carolina-based paytech on the fundraising round according to the sources.

In 2017, the payment processor raised $300 million bringing it to a $1.4 billion valuation.

AvidXchange declined to comment on the newest private funding round which comes after fellow US payment processing firm Stripe reached a $35 billion valuation in September following a $250 million fundraising round.

Whilst Stripe focuses on ecommerce businesses’ payments to and from consumers, AvidXchange automates payments, invoicing and accounting for small and mid-sized businesses (SMBs).

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

Fellow fintech company Bill.com, which automates business payments and invoices, is set to price its initial public offering (IPO) this week, targeting a valuation of up to $1.25 billion.