AvidXchange Holdings, Inc. provides accounts payable (‘AP’) automation software and payment solutions for middle market businesses and their suppliers.
The company’s Software-as-a-Service (‘SaaS’) based, end-to-end software and payment platform digitizes and automates the AP workflows for more than 8,500 businesses (the company’s buyers), and it has made payments to more than 1,350,000 supplier customers of its buyers (suppliers) over the past five years. While acquiring new and retaining exist...
AvidXchange Holdings, Inc. provides accounts payable (‘AP’) automation software and payment solutions for middle market businesses and their suppliers.
The company’s Software-as-a-Service (‘SaaS’) based, end-to-end software and payment platform digitizes and automates the AP workflows for more than 8,500 businesses (the company’s buyers), and it has made payments to more than 1,350,000 supplier customers of its buyers (suppliers) over the past five years. While acquiring new and retaining existing relationships with buyers and suppliers are important to its business, the growth of the company’s business is ultimately dependent upon the number of transactions it processes, as well as its total payment volume.
The company developed its technology platform through years of working to solve its buyers’ unique middle market workflow challenges. The company defines middle market businesses primarily as companies with between $5 million and $1 billion in annual revenue. Leveraging the company’s domain expertise, it purpose-built a two-sided network that connects buyers and suppliers, drives digital transformation, increases efficiency and accuracy in AP workflows, accelerates payments, enables insight into critical analytics, and lowers operating costs for its buyers.
By integrating with the company’s buyers’ middle market-oriented accounting and information systems, the company’s platform automates the end-to-end AP workflows for its buyers and enhances the payment experience for its suppliers through the following products and features:
AP Automation Software: The company has developed a SaaS-based solution automating and digitizing the capture, review, approval, and payment of invoices for its buyers. It digitally captures invoices from suppliers and applies the buyer’s specific business rules to enable them to begin processing the invoice, extract and utilize transaction data from the invoice to enhance and configure the approval workflows, and manage the entire AP process through the payment of the invoice.
The AvidPay Network: The company’s two-sided payments network connects its buyers with their suppliers, enabling invoice payments on behalf of a buyer and according to the supplier’s business rules, payment preferences, and remittance data. It supports a variety of payment methods depending on the supplier’s preference, including virtual credit card (‘VCC’), enhanced automated clearing house (‘ACH’) (the company’s AvidPay Direct), and physical check, while delivering enhanced remittance data to streamline the reconciliation process.
The AvidXchange Supplier Hub: The company provides its supplier network insights into their cash flow, tools that offer visibility of their in-network invoices and payments, and for certain suppliers, an early payment feature (Payment Accelerator). These additional features, as well as others in the company’s product pipeline, allow it to both monetize and increase engagement on its two-sided payments network.
The company’s customers operate across a variety of verticals in which it has domain expertise, including real estate, community association management, construction, financial services (including banks and credit unions), healthcare facilities, social services, education, media, and hospitality. Certain segments of the company’s customers, particularly those acquired through the FastPay acquisition that focus on political advertising within its media vertical, are subject to seasonal and cyclical trends.
Go-To-Market
The company sells its solutions through a hybrid go-to-market strategy that includes direct and indirect channels. The company’s direct sales force leverages its domain expertise in select verticals and over 290 referral relationships with integrated software providers, financial institutions, and other partners to identify and attract buyers that would benefit from its AP software solutions and the AvidPay Network. The company’s indirect channel includes reseller partners and other strategic partnerships with banks and financial institutions, such as its partnerships with Mastercard, through Mastercard’s B2B Hub, which includes Fifth Third Bank and Bank of America, other financial institutions, such as KeyBank, third-party software providers, and technology business partners, such as AppFolio, MRI Software, RealPage, and Sage Software. The company’s referral and indirect channel partnerships provide it greater reach across the market to access a variety of buyers.
The company’s go-to-market team is core to its growth and continues to evolve with the evolving market and its own internal development of products. It continuously monitors key metrics that measure its sales team and channel sales success, productivity, and efficiency. The company maintains long-term customer satisfaction through its relationship management and customer care organization, which provides customer support through multiple avenues of communication, including email, phone, chat, and forums.
The company’s marketing is focused on its ability to serve the middle market, its end-to-end solutions, the value it provides to its customers, and its continued product innovation. The company’s targeted marketing to the middle market includes both digital and traditional brand campaigns, targeted advertisements, social, thought leadership pieces, trade shows, and webinars.
The company continues to invest in its sales and marketing capabilities to capitalize on its market opportunity.
Growth Strategy
Key elements of the company’s growth strategy are to win new buyers and their suppliers, grow with existing buyers and suppliers, increase the conversion of paper checks to electronic payments, continue to innovate and enhance new products, enter new verticals, selectively pursue strategic M&A, and international expansion.
Regulatory Environment
The company is also registered as a Money Services Business with the United States Department of Treasury’s Financial Crimes Enforcement Network, or FinCEN, and is subject to the Bank Secrecy Act (‘BSA’), and certain obligations contained therein, including, among other things, certain record-keeping and reporting requirements, and examinations by FinCEN.
As required under the BSA, the company has implemented and is continuing to expand an AML program designed to prevent its platform from being used to facilitate money laundering, terrorist financing, and other financial crimes. The company’s program is also designed to prevent its products from being used to facilitate business in certain countries, or with certain persons or entities, which are targets of economic or trade sanctions that the Office of Foreign Assets Control (the ‘OFAC’) and various foreign authorities administer or enforce.
Intellectual Property
As of December 31, 2024, the company had several trademark applications and registrations for certain of its logos. It also owns several domain names, including www.avidxchange.com.
History
AvidXchange Holdings, Inc. was founded in 2000. The company was incorporated in Delaware in 2000.
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