AvidXchange’s software-as-a-service platform is a leader in offering three critical business processes in one complete solution for AP automation, payment services and payment acceleration. The company has signed up over 8,000 midsized customers which have recorded impressive efficiency gains in accounts payable (AP) metrics, such as: 65%-70% reduction in AP processing time, even higher percentages gained in total processing costs savings, and speeding up invoice approval to three days on average from ten. Nearly 100% of all bills on the AvidXchange platform are paid electronically and many businesses report the ability to reallocate resources to more value-added functions. Most large organizations have automated 90% of their AP, while mid and small businesses that struggle with personnel issues and underinvestment in user friendly systems imply a far smaller, and problematic, 50%. We estimate in the midmarket today, there are still 3 billion manually processed AP invoices per year, potentially representing a service revenue TAM in the billions in dollars.
AvidXchange annually processes $76 billion in payment volume from 75 million transactions while connecting to 1.2 million suppliers through their 8,000 customers. The company integrates with 225 accounting programs including big sellers like OracleNetSuite and Intuit’s quickbooks which lead to name brand customer wins like DoorDash and Arby’s. AP functions are often overlooked by smaller companies because so much effort is put into sales and managing the current business ecosystem with limited resources, AvidXchange relieves some of that pressure. We see long term demand for AvidXchange’s services.
