Payment services firm Mastercard has invested in US-based payment services automation software provider AvidXchange as part of a $300m financing round.
The round also featured pension fund manager Caisse de Dépôt et Placement du Québec, which provided $100m of the funding, Singaporean state-owned investment firm Temasek and Peter Thiel, a co-founder of online payment technology producer PayPal.
AvidXchange supplies technology that automates invoice and payment processes for some 5,500 corporate clients operating in industries such as financial services, real estate, energy and construction.
Mastercard’s participation in the round came alongside the signing of a strategic partnership agreement that will involve the distribution of AvidXchange’s end-to-end accounts payable and payment automation software to small and mid-size businesses through the former’s B2B Hub.
Colleen Taylor, Mastercard’s executive vice-president of new payments business, said: “We see this solution as helping organisations maximise every minute and every dollar that they invest in their business.
“The comprehensive automated payment experience we deliver will help improve supplier relationships and accelerate the conversion of B2B payments from paper cheques to electronic payments.”
Michael Praeger, co-founder and CEO of AvidXchange, added: “The round of funding that we closed will empower us to continue to make bold business decisions to serve the mid-size businesses, and scale our operations as we maintain focus on delivering a superior customer experience.”
AvidXchange had previously raised approximately $583m according to press releases and securities filings, having secured $18m in a November 2016 round led by Fifth Third Capital, a subsidiary of financial services firm Fifth Third Bancorp, with backing from investment firm Pivot Investment Partners.
Bain Capital Ventures had led a $225m round in September 2015 that included financial services providers KeyBank and Square 1 Bank as well as Foundry Group, NYCA Partners and TPG Special Situations Partners.
Charlotte Angel Partners, CT Communications Northeast Trust, Piedmont Angel Network and Clarus Corporation were among the company’s earlier investors. FT Partners was financial and strategic advisor to AvidXchange for the latest round.