U.S.-Israeli fintech startup Melio raises $250M funding to help small businesses manage their payments and receivables; now valued at $4 billion
Melio, a New York-based fintech startup that gives small businesses a way to digitally manage their business-to-business payments and receivables, today announced it has raised $250 million in late-stage funding round, tripling its valuation to $4 billion since the start of 2021. The announcement follows a January fundraise, which valued the company at a $1.3 billion valuation.
The Series D round, which brings the company’s total funding to $506 million since its inception in 2018, was co-led by new investor Thrive Capital and existing shareholder General Catalyst. Other backers including Tiger Global Management, as well as existing investors Accel, Bessemer, Coatue, Corner Ventures, and Latitude, also participated.
Founded in 2018 by Ilan Atias, Matan Bar, and Ziv Paz, Melio provides a free online platform that helps small businesses and their suppliers to receive and transfer payments faster and easier. The company was built to help small businesses by providing a B2B payments experience that not only saves time but also significantly improves cash flow. Melio said its monthly processing volumes had surged 5,000% over the past 18 months.
Melio has tie-ups with Capital One and small-business accounting software provider Intuit’s QuickBooks. Through its online platform, small businesses can pay any invoice with a bank transfer for free, or use their credit card to defer payment (2.9% fee).
Melio, which has increased its workforce from 35 to over 120 employees since its inception, said it planned to use the funds to expand its partnerships with financial institutions, software providers, and marketplaces.