US-based billing and payment platform developer AvidXchange has filed for an initial public offering on the Nasdaq Global Select Market that would provide an exit for payment services firm Mastercard.
Founded in 2000, AvidXchange is the creator of a software platform which automates payments and invoicing processes for small and medium-sized businesses, a segment it believes to be underserved. To date it has handled payments for over 7,000 businesses.
The company has set a $100m placeholder amount for the IPO, the proceeds of which will be used to redeem shares, grow its workforce and marketing efforts, further develop its products and potentially make strategic acquisitions.
AvidXchange closed a $338m funding round in April 2020 featuring Mastercard, Lone Pine Capital, Schonfeld Strategic Partners, Sixth Street Partners, Pivot Investment Partners and Neuberger Berman. The close followed a $260m first tranche from TPG Sixth Street Partners and undsclosed others three months earlier.
Mastercard had joined Caisse de dépôt et placement du Québec (CDPQ), Temasek and private investor Peter Thiel to provide $300m for the company in 2017, taking its overall funding to $883m.
Earlier AvidXchange investors include Fifth Third Capital, a subsidiary of financial services firm Fifth Third Bancorp, was well as financial services providers KeyBank and Square 1 Bank, Bain Capital Ventures, Pivot Investment Partners, Foundry Group, Nyca Partners, TPG Special Situations Partners, Charlotte Angel Partners, CT Communications Northeast Trust, Piedmont Angel Network and Clarus Corporation.
Bain Capital is the largest external shareholder in the company, holding a 14.1% stake, followed by chief executive Michael Praeger (8.5%), Mastercard (7.4%), CDPQ (7%), Temasek (6.9%), Capital Research and Management (6.4%) and entities affiliated with former board member Steve McLaughlin (5.8%).
Goldman Sachs, JP Morgan, Bank of America Securities, Credit Suisse, KeyBanc Capital Markets, Deutsche Bank Securities, Piper Sandler, Barclays, Nomura and Fifth Third Securities have been appointed underwriters for the offering.
