Afternoon Coffee: AvidXchange raises $127 million; U.S. asks Mexico to open factories; ’50/50′ vendors in analyst videos for SIG Summit

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AvidXchange, an accounts payable fintech provider, has raised $127 million in a round of funding, PYMNTS.com reports. The round drew from 52 investors across 12 states. This comes after the company raised $260 million in January with contributions from TPG Sixth Street Partners and others.

"With only 40 percent of U.S. businesses automating their accounts payable processes, we continue to solve a real problem for companies that still rely on paper invoices and checks, fundamentally changing the way they pay their bills," co-Founder and CEO Michael Praeger said in a press release about the latest funding round. "This has become even more evident as we see businesses implementing continuity plans and shifting to work from home models, making automation essential to support mission critical processes and keep operations running."

Additionally, a recent AvidXchange survey of 500 U.S. companies found that just over half of them had the correct capabilities to pay their employees while they work at home during the coronavirus pandemic.

AvidXchange also was named to SpendMatters' list of "50 Providers to Watch," which came out Tuesday.

Videos highlight Basware & Beeline on new ‘50/50’ lists

Spend Matters’ analysts chose 2020's top procurement technology vendors for the “50 to Know” and the “50 to Watch” lists that came out this week, and our analysts also have done videos about some of the providers who will attend the digital SIG Procurement Technology Summit, which begins May 11. The videos are out now, and Afternoon Coffee will feature a couple of them a day.

Basware, a provider in the P2P space:

Basware is “doing a lot of really cool things with AI and bots and really trying to make it a seamless P2P experience,” says Pierre Mitchell, Chief Research Officer of Spend Matters. See our full Basware video here.

 

Beeline, a contingent workforce solutions provider:

Analyst Andrew Karpie, our Research Director for Contingent Workforce & Services issues, says of Beeline: “The company sets itself apart in terms of the depth and breadth of its solutions and services team that can serve even the largest and most complex multinational organizations.” See our full Beeline video here.

The 50/50 lists are part of Spend Matters Almanac, a directory of more than 500 providers that offers deep insights on the players in the procurement technology market.

U.S. asks Mexico to reopen factories

The U.S. government has urged Mexico to allow the reopening of certain factories that were closed due to the coronavirus crisis, according to a report from Mexico News Daily. Mexico, among the top suppliers to the U.S. aerospace and defense sector, didn’t classify certain factories in that sector as essential when the health emergency was declared at the end of March.

Some of the companies with shuttered factories in Mexico include General Electric, Honeywell, Lockheed Martin and Eurocopter.

Hyundai cars stuck in U.S. ports

Reuters reports that South Korea’s Hyundai Motors has thousands of cars sitting in U.S. ports. While many automakers shut down production in March due to the coronavirus pandemic, Hyundai Motor ramped up production to as much as 98% late in the month. The Korean market was recovering after a difficult February and the company bet on demand from U.S. customers, shipping 33,990 vehicles to the U.S. in March, which is 4.3% more than in 2019, according to the report.

Hyundai had nearly fully recovered from a component shortage from China in March. However, with U.S. dealers unwilling to take the new vehicles, production of the South Korean factory could fall to as much as 70% in April.

Companies rethinking dependence on Chinese supply chain

CNBC reports that investor Mark Mobius, founder of Mobius Capital Partners, has said companies around the world will alter their supply chains to be less dependent on China after disruptions caused by the coronavirus crisis.

Speaking to CNBC’s “Street Signs Europe” on Tuesday, Mobius said the pandemic was already prompting companies to rethink and diversify their supply chain in the wake of the pandemic. Altering their supply chain would help mitigate supply problems from any future events of a similar scale.

Spend Matters PRO offer extended a month

Through this month, a Spend Matters' special PRO Expert Survival Pack is available to procurement practitioners only* at up to 50% off. The discount applies to PRO subscription content from our analysts and other services. — Learn more

Read all of Spend Matters’ coronavirus coverage here.

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