AvidXchange™ Signs $300 Million in Financing to Support Business Growth with New Initiatives, Including The Mastercard B2B Hub that Will Deliver AP and Payment Automation through Banks
CHARLOTTE, N.C., (June 8, 2017) – AvidXchange™, a leading fintech provider of accounts payable and payment automation for midsize companies, announced today its strategic partnership with Mastercard to deliver accounts payable and payment automation to small and midsize businesses. To support AvidXchange’s continued growth and ability to scale operations for strategic ventures, such as the one with Mastercard, the company is also announcing the signing of $300 million in financing with contributions from Caisse de dépôt et placement du Québec (CDPQ), Mastercard, Temasek, and Peter Thiel. The company’s long-term partner, Financial Technology Partners LP and FTP Securities LLC (“FT Partners”), served as exclusive financial and strategic advisor to AvidXchange in this transaction.
“We founded AvidXchange to revolutionize the way midsize companies pay their bills. The strategic partnership with Mastercard will help us to realize the vision that we’ve had to transform an industry, and to reach the 350,000 businesses that are currently operating in the middle market with antiquated processes,” commented Michael Praeger, CEO and Co-Founder of AvidXchange. “The round of funding that we closed will empower us to continue to make bold business decisions to serve the midsize businesses, and scale our operations as we maintain focus on delivering a superior customer experience. We are thrilled with the group of investors that we assembled. The diversity in this cohort of investors is a sign of the growing interest in the fintech sector and acknowledgement that companies, like AvidXchange, are the way forward for business,” added Praeger.
AvidXchange has been a leader in payables automation for businesses since 2000, and serves more than 5,500 customers in North America. Mastercard and AvidXchange forged this partnership to leverage AvidXchange’s expertise in AP and payment automation and Mastercard’s proven commercial payment solutions to further penetrate the middle market, which has been much slower to adopt technologies to automate manual invoice and payment processes than larger enterprises. The Mastercard B2B Hub with AvidXchange will be delivered through card issuers as an end-to-end automated solution that meets all the payment needs of small and midsized companies. AvidXchange will serve as the execution partner for Mastercard’s launch of The Mastercard B2B Hub in the United States. Beginning later this year, The Mastercard B2B Hub will be made available to companies through their bank or commercial card issuer. AvidXchange will offer banks who choose not to utilize their own card payment capabilities with The Mastercard B2B Hub program options through its existing relationships with Comdata and KeyBank.
“Midmarket and small businesses are growth engines of our economy. The Mastercard B2B Hub is the latest way we are working to meet the broader payment needs of this segment,” said Colleen Taylor, executive vice president of new payments business for Mastercard. “We see this solution as helping organizations maximize every minute and every dollar that they invest in their business. The comprehensive automated payment experience we deliver will help improve supplier relationships and accelerate the conversion of B2B payments from paper checks to electronic payments.”
The group that AvidXchange assembled for its $300 million round highlights the growing diversity in investment interest for fintech. CDPQ is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. It is one of North America’s leading institutional fund managers, and this transaction adds to CDPQ’s private equity investments in the financial technology sector. Mastercard is a leader in electronic payments, and this investment will support the partnership with AvidXchange. Temasek is an investment company headquartered in Singapore, whose investment activities are guided by its investment themes and the long-term trends they represent.
About Caisse de dépôt et placement du Québec
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2016, it held $270.7 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure and real estate. With over $30 billion of assets under management, CDPQ’s private equity team has significant expertise both as a direct investor in companies and as a partner in investment funds. From LBOs to growth equity in businesses in all sectors, CDPQ differentiates itself through its flexible and collaborative approach, worldwide network, and long-term investment horizon. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
Incorporated in 1974, Temasek is an investment company headquartered in Singapore. Supported by 10 offices globally; including New York and San Francisco in the U.S., London in Europe, Beijing in China, and Mumbai in India, Temasek owns a S$242 billion (US$180b) portfolio as at 31 March 2016, mainly in Singapore and Asia. Temasek’s portfolio covers a broad spectrum of industries: telecommunications, media & technology; financial services; transportation & industrials; consumer & real estate; life sciences & agriculture; as well as energy & resources. Its investment activities are guided by four investment themes and the long-term trends they represent: Transforming Economies; Growing Middle Income Populations; Deepening Comparative Advantages; and Emerging Champions. Temasek’s current and prior investments in the U.S. include Airbnb, Ancestry.com, Dell Technologies, Intapp, Internet Brands, Jasper, Univar, Verily Life Sciences and Virtu Financial.
For more information, visit www.temasek.com.sg.
AvidXchange™ revolutionizes the way companies pay their bills. Serving more than 5,500 clients throughout North America, AvidXchange is an industry leader in automating invoice and payment processes for midmarket companies spanning multiple industries including Real Estate, Financial Services, Energy, and Construction. AvidXchange has been recognized as one of the 50 fastest-growing private companies in the Charlotte area for six consecutive years, ranked among Deloitte’s Fast 500 this past year, and recently was named of the top 100 technology companies in North America by Red Herring. In the midst of record growth, AvidXchange has remained true to its most valued competitive advantage—its people. AvidXchange has been recognized as one of the Best Places to Work in Charlotte for seven consecutive years. For more information, contact us at 800.560.9305 or [email protected].