B2B payments company AvidXchange has impressed investors again, it seems. The company announced its latest funding round Tuesday (Nov. 29).
According to reports, AvidXchange raised $18 million in a funding round led by Fifth Third Capital. Pivot Investment Partners also participated. The firm, which offers accounts payable automation and other payment solutions to banks and other financial players, said it will use the funds to continue developing new products and technologies. It will also expand staff and create new channels, the company added.
“We have really enjoyed working with Fifth Third Bank and Pivot Investment Partners as we add another set of blue chip strategic investors to our existing investor base,” stated AvidXchange CEO Michael Praeger in a statement. “We see both as far more than financial investors but also as trusted advisors.”
While $18 million is nothing to scoff at, it falls far short of the whopping $225 million investment round completed last year. That funding was led by Bain Capital with participation from Foundry Group, Nyca Partners, TPG Special Situations Partners and other backers.
Following that funding, Praeger told PYMNTS: “Focusing on and building out the front-end AP automation side was the key to executing our payments business.”
“We’re a little bit lucky in terms of how that came together and having what the middle-market companies needed,” he continued. “But that took time — 13 years of plugging away under the radar and the last two a little more visible. What I think [investors] saw is a company that’s now gotten significant traction.”