{"id":10107,"date":"2021-10-12T18:37:16","date_gmt":"2021-10-12T15:37:16","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=10107"},"modified":"2023-06-22T17:45:29","modified_gmt":"2023-06-22T14:45:29","slug":"ipo-of-avidxchange-inc-a-payment-service-for-small-and-medium-businesses","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2021\/10\/12\/ipo-of-avidxchange-inc-a-payment-service-for-small-and-medium-businesses\/","title":{"rendered":"IPO of AvidXchange Inc: a Payment Service for Small and Medium Businesses"},"content":{"rendered":"\n

One of the key problems small and medium businesses were having during the lockdown is the necessity to quickly build the system of electronic payment acceptance and collaboration with contractors. While there were no tough quarantine restrictions, companies could accept payments for their services and products in cash. To correctly switch to electronic payments, companies had to readjust credit debts control systems. The coronavirus pandemic significantly boosted all the above-mentioned processes.<\/p>\n\n\n\n

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AvidXchange Inc. is specializing in in financial business process automation. The company’s IPO at the NASDAQ is scheduled for October 12th and its shares will start trading the next day under the “AVDX” ticker. In this article, we’ll take a closer look at the company’s business and assess whether its shares are worth investing in.<\/p>\n\n\n\n

<\/span><\/a>Business of AvidXchange Inc<\/span><\/h2>\n\n\n\n

The company was established in 2000 with its headquarters in North Carolina and currently employs over 1,500 people. AvidXchange’s major investors were MasterCard, Charlotte Angel Partners, Pivot Investment Partners, and Bain Capital Ventures. AvidXchange developed a Saas platform, which automates invoice issues, works with credit debts, and sets up electronic payment processing.<\/p>\n\n\n\n

\"AvidXchange’s<\/a>
AvidXchange’s platform operation scheme<\/em><\/figcaption><\/figure>\n\n\n\n

The company’s clients get a comprehensive solution, which allows them to reduce expenses, increase order<\/a> processing speed, implement electronic document workflow, and improve business processes. Moreover, users of the platform receive an analytical module that helps to minimize costs, optimise office processes and staff structure.<\/p>\n\n\n\n

\"Key<\/a>
Key performance indicators<\/a> of AvidXchange Inc.<\/em><\/figcaption><\/figure>\n\n\n\n

Software developed by AvidXchange is easily integrated into other brands’ products (Microsoft<\/a> Dynamics, Oracle, NetSuite, etc.). In North America, over 7,000 organizations, for example, Bank of America<\/a> and KeyBank, use the company’s services.<\/p>\n\n\n\n

\"History<\/a>
History of AvidXchange Inc.<\/em><\/figcaption><\/figure>\n\n\n\n

Every year, AvidXchange processes payments worth $145 billion. This is the key metric of the company’s business growth because it directly shows that the more transactions are processed, the more revenue the company y will get.<\/p>\n\n\n\n

I’ll say one more time that the company benefited from the lockdowns during the coronavirus pandemic. However, one shouldn’t worry that AvidXchange’s clients will leave after social restrictions are removed – the company’s service is convenient and helps clients to save time for more important business processes. Now let’s talk about the prospects of the company’s target market.<\/p>\n\n\n\n

<\/span><\/a>The market and competitors of AvidXchange<\/span><\/h2>\n\n\n\n

According to MasterCard, in 2018, North American companies made electronic payments worth more than $25 trillion, so AvidXchange has entered a huge target market. The growth area here is the substitution of paper checks, which covered 40% of the total volume in 2020, for e-payments.<\/p>\n\n\n\n

Another resource, PYMNTS, says that about half of companies working in this sphere are thinking of switching to digital transactions. As estimated by MarketsandMarkets, the global digital processing market will add 11% every year until 2024.<\/p>\n\n\n\n

However, the industry is highly competitive and includes both transnational giants and small regional companies. AvidXchange’s key competitors are:<\/p>\n\n\n\n