AvidXchange IPO launches: What comprises AP Automation and B2B Payments capability and is it ‘the next big thing’? – Spend Matters

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When Coupa had its IPO and started its public market climb, it put procurement technology on the map from an investment perspective. While there has been significant buzz over the AP automation market in recent years and unicorn valuations for AvidXchange, Tipalti and Tradeshift, among others there had not been a specialized vendor with a large valuation to go public in the market. But all that changed this when AvidXchange had a successful IPO, issuing its stock at $25 a share and raising $660 million. That gives the firm an enterprise valuation of approximately $5 billion. For those new to AvidXchange, we summarized the provider in the following brief AvidXchange IPO analysis: A look behind the curtain (S-1 review, vendor summary, SWOT and outlook).

Granted, AvidXchange is not entirely alone as a publicly traded AP automation vendor. Glantus, an Irish-based AP automation firm, also had a successful IPO this year, but its revenue is a fraction of Avids, and its enterprise value is less than $100 million. BottomLine and Bill.com also are public companies that serve the AP automation market, but both have multiple P&Ls outside of the AP area.

So the questions remain: Could AvidXchanges IPO do for this market, and associated sectors, what Coupa did for procurement technology? And may this market prove even more attractive than procurement alone?

Based on interviews with dozens of clients, investors and partners in the AP ecosystem and Spend Matters research, this two-part Spend Matters PRO series provides insight into why the market is zeroing in on AP automation as the next big technology thing.

Today we begin by providing an introduction to the functional components of AP and B2B payments for those who are new to the sector, and we explain why these areas are sticky and attractive for solution providers, including key takeaways for those who are brand-new to the area and just need to know the salient points.

Additional data and insight on AP automation and providers can be found for those who want to further unpack and flesh out their understanding of AP automation and B2B payments capabilities and requirements, including the competitive landscape of providers, how they stack up and which segments they serve:

See our PRO analyst content for AP Automation/Invoice-to-Pay here.

See our vendor rankings in SolutionMap for AP Automation and I2P.

See our PRO content on payments technology vendors here.

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AvidXchange IPO launches: What comprises AP Automation and B2B Payments capability and is it 'the next big thing'? - Spend Matters