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AvidXchange, a fintech provider of accounts payable and payment automation, announced on Monday it secured $18 million during a recent investment round, which was led by Fifth Third Capital, a subsidiary of Fifth Third Bancorp, with participation from Pivot Investment Partners.
The company stated it is planning to use the investment rounds’ funds for the development of new, innovative technologies to further serve its clients and high growth, to develop new sales channels, and to hire staff to support its rapidly growing customer base. It was also noted that Fifth Third Capital’s investment is part of a broader strategy to allow commercial bank customers to utilize the AvidXchange platform to automate invoices and payment processes.
Michael Praeger, CEO and co-founder of AvidXchange, stated:
“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. We see both as far more than financial investors, but also as trusted advisors. Their experience and invaluable connections will serve AvidXchange well as we continue to grow as a company and develop our various distribution channels. Fifth Third Bank is a leader in banking technology, and we are thrilled to be among the companies that they have selected to bolster their edge in the technology space, as well as help us bring automated bill payment solutions to middle market companies.”
Akbar Poonawala, co-founder of Pivot Investment Partners, added:
“We have been following AvidXchange closely over the past year, and are deeply impressed with the special business that Michael Praeger and his team are building. We are delighted to join a highly relevant set of value-added investors.”