AvidXchange is eyeing additional acquisitions and scalability after scoring an additional $128 million in equity capital on the heels of its $260 million funding round in January, CEO Michael Praeger told Bank Innovation. The company automates invoicing and outgoing payments for the B2B market.

Using accounts payable software, the Charlotte, N.C.-based AvidXchange integrates with common accounting systems like Oracle NetSuite and Intuit QuickBooks to eliminate the need for manual payment processes and paper checks.

Additional investor demand following the close of AvidXchange’s January funding round prompted the company to raise an additional $100 million to be “more opportunistic,” Praeger said. With the injection of capital, AvidXchange is looking at acquisition opportunities in the next six months to continue to grow the business into new verticals, he said, but did not disclose which industries have made the short list. Last August, AvidXchange purchased BankTEL Systems, which has brought AvidXchange’s total number of bank customers to 2,000. The company focuses on five markets: financial services, real estate, home owners associations, health care and construction.

AvidXchange is also focusing on scaling its team, specifically in sales, to support customer acquisition and onboarding and building on the “record March” it saw in terms of new customers and existing clients’ expanded use of the platform.

“One of the things we learned with COVID is the importance of what we’re doing for companies for continuity purposes, and that led to an acceleration in business,” Praeger said. “Companies are realizing if they’re in the environment of cutting paper checks, it’s really hard to do that in the work-from-home environment because banks aren’t going to allow [accounts payable] staff to take home pre-printed checks and process corporate payments at home.”

The company manages the invoice-to-payment process for businesses and offers a white-label version of its products that are used by Fifth Third and KeyBank. That product is also gaining traction, Praeger said, noting “a few” banks are currently implementing with AvidXchange to be ready next quarter. Currently, about 35 banks use its white label products and Praeger is aiming to onboard two to four lenders each year.

“Doing your accounts payable and accounts receivable is pretty complicated and, even at the beginning of 2020, the vast majority of payments in the B2B world happens via physical checks,” Melissa Stevens, Fifth Third’s chief digital officer, previously told Bank Innovation. “As you look at the time it takes to do all the manual entry, all the physical checks moving around you, it’s a lot of people and it’s a lot of time — and time is money.” Fifth Third’s partnership with AvidXchange brought the normal 30-plus day cash flow cycle down to five days or less, she said.

In addition to attracting new clients, the latest financing effort drew new investors, including lead investor Lone Pine Capital, Neuberger Berman and Schonfeld Strategic Advisors.

“AP automation is one of the most exciting spaces within B2B payments, given the potential cost savings and increased efficiency for buyers and suppliers,” said Charles Kantor, senior portfolio manager at Neuberger Berman.

Since its founding in 2000, AvidXchange has processed more than $140 billion in transactions annually across its network of more than 600,000 suppliers and 1,500 employees, according to the company. This latest round brings the company’s total funding to $925 million. Radius Bank, Mansfield Bank and Hingham Institution for Savings are some of AvidXchange’s other banking clients.