Charlotte-based fintech firm AvidXchange, which provides accounts payable and automated payment solutions to midsize businesses, announced a strategic partnership with Mastercard along with a separate capital raise of $300 million. Both the strategic partnership with Mastercard and the capital raise of $300 million will go towards the continued growth and scaling of the company’s operations.
AvidXchange provides small to midsize businesses a revolutionary way to pay their bills. The company’s software provides a complete solution for accounts payable and automated payments, from the creation and approval of purchase orders all the way to supplier payments. AvidXchange services a wide range of midmarket companies in several different industries including real estate, financial services, energy, and construction. Founded in 2000, the company currently has around 1,000 employees and was ranked among Deloitte’s Fast 500 this past year.
Creating Jobs and Helping Midsize Businesses
The partnership with Mastercard will allow AvidXchange to expand its business operations and hopefully exponentially grow its client base. According to the Charlotte Observer, the company also plans to create 200 new jobs this year and 600 jobs by the end 2018. Michael Praeger, CEO and Co-Founder of AvidXchange, said of the partnership:
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.
By partnering with Mastercard AvidXchange will also help execute and launch Mastercard’s B2B Hub in the United States later this year. The Mastercard B2B Hub will be an end-to-end automated payment solution for small and midsize companies.
Leading the Way for Fintech
AvidXchange also announced the signing of $300 million in financing with contributions from Caisse de dépôt et placement du Québec (CDPQ), Mastercard, Temasek, and Peter Thiel, co-founder of Paypal. CDPQ is one of Canada’s leading institutional funds with over $30 billion under management. Temasek is an investment company based out of Singapore that holds a portfolio covering a broad range of industries, from telecoms and media to real estate and even energy. The broad range of financial backers, both by geography and industry, shows how far fintech has come. It’s also a sign of the growing interest in fintech around the world, especially in Asia, and an acknowledgment that companies like AvidXchange are on the forefront of innovation.
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