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.
“We had a record first quarter,” says CEO
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.
Related: Worldline continues acquisition streak with ecommerce gateway GoPay
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.
Read more: Paytm Payments Bank partners with Mastercard for physical card rollout
