Unique: Organization payments company AvidXchange preps for IPO, eyeing $7 billion valuation

By David French

(Reuters) – AvidXchange Inc has employed expense financial institutions together with Goldman Sachs Team to lead preparations for an preliminary community presenting which might benefit the organization payments processor at much more than $7 billion, folks acquainted with the make a difference explained on Tuesday.

Backed by traders such as Mastercard Inc and PayPal Holdings Inc co-founder Peter Thiel, AvidXchange offers software that automates payments, invoicing and accounting for tiny and mid-sized companies.

COVID-19 lockdown actions have pressured scaled-down organizations to embrace digital methods for every day, paper-significant responsibilities, a development which has boosted businesses these as AvidXchange.

In search of to capitalize on that momentum, the Charlotte, North Carolina-based mostly enterprise aims to listing on the stock sector in the second quarter. As nicely as Goldman, JPMorgan Chase & Co, Bank of The united states Corp, and Barclays PLC have been retained as IPO arrangers, according to two of the sources.

Those people concerned in the offer feel AvidXchange could be well worth in between $5 billion and $7 billion in an IPO, and most likely as significantly as $10 billion specified current strong investor appetite for payments organizations, the resources claimed.

This would be noticeably better than the $2 billion AvidXchange was valued at in its most new personal fundraising round in April, 2020.

The sources spoke on affliction of anonymity as the data is personal. AvidXchange declined to comment. Spokespeople for the quartet of banking companies either declined to remark or did not immediately react to comment requests.

Started in 2000, AvidXchange processes about 12 million payments on a yearly basis with a overall worth of $140 billion, according to its website.

Values of economical technology companies have boomed in the past 12 months, each for general public and private names. AvidXchange’s stated friends, Bill.com Holdings Inc and Coupa Application Inc, have innovative much more than 300{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} and 89{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} respectively more than that period of time.

Earlier this month, Swedish payments organization Klarna announced a new funding round at virtually triple its valuation from when it tapped non-public investors in September.

(Reporting by David French in New York Editing by Alexandra Hudson)