Fifth Third Capital, the investment arm of diversified financial services firm Fifth Third Bancorp, led an $18m funding round for US-based fintech developer AvidXchange on Monday.
The round also featured financial sector-focused investment firm Pivot Investment Partners.
AvidXchange has developed an automated invoicing and payment processing platform aimed at sectors such as real estate, financial services, energy and construction. The company currently serves more than 6,000 clients in North America.
Fifth Third Bancorp will integrate AvidXchange’s technology into its own offering, making it available to users of its commercial bank operations. Meanwhile AvidXchange will use the money to develop additional features, add sales channels and drive recruitment.
AvidXchange previously received $225m in capital from investors led by Bain Capital Ventures in September 2015. That round also included Foundry Group, NYCA Partners, KeyBank, Square 1 Bank and TPG Special Situations Partners.
Michael Praeger, CEO and co-founder of AvidXchange, said: “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.”