AvidXchange

AvidXchange offers an accounts payable (AP) automation platform that governs the entire AP process from invoice management and custom approval workflows to making payment to suppliers in AvidXchange’s network (over 825,000 as of October 2022). Payments automated through the platform can be integrated with the user’s accounting system, which remains the system of record. Accordingly, AvidXchange is integrated with over 220 accounting softwares, including NetSuite, Sage, and QuickBooks. The platform also provides visibility and insights on invoices to optimize expenses. 

The platform reportedly processed around 70 million transactions in 2022 and managed over USD 68.2 billion in spend. AvidXchange also introduced cross-border payment capabilities for its users in November 2022. 

Key customers and partnerships

The company primarily serves middle-market companies across a range of industries - including real estate, construction, healthcare, hospitality, media, and tech. As of October 2022, the platform had over 8,000 enterprise customers, including DoorDash, American Dental Association, FirstService Residential, and Empire State Realty Trust. 

AvidXchange entered a referral partnership with credit union service organization Member Driven Technologies (MDT), in July 2022, to promote AvidAscend (invoice-to-pay software for banks and credit unions) among MDT’s 100+ credit union clients. In December 2022, the company partnered with technology company Wise to support international payment capabilities.

In November 2023, AvidXchange announced a partnership with AppFolio, a property management solutions provider, to enhance AP automation for its 19,000 real estate customers and it partnered with M3 Accounting Solutions to offer hotels an automated financial management solution by integrating AvidXchange's payment automation into M3's CoreSelect accounting software.

Funding and financials

AvidXchange was listed on the Nasdaq in October 2021 and raised USD 660 million through its IPO, at a valuation of around USD 5 billion (more than double its USD 2 billion valuation in January 2020). The company’s revenue amounted to USD 380.7 million in 2023; however, it was yet to turn profitable, with negative adjusted EBITDA of USD 30.5 million. AvidXchange guides for revenue to rise 16-18% YoY in 2024 and reach USD 441-447 million. It also expects the annual adjusted EBITDA to turn positive and come in between USD 67–71 million.