Israeli B2B payments platform for small businesses Melio today confirmed that it has raised $250 million at a company valuation of $4 billion. The company has tripled its valuation since it raised $110 million in its previous financing round in January 2021. Details about the imminent financing round were first reported by "Globes" last month.
The Series D financing round was co-led by new investor Thrive Capital with existing investor General Catalyst. Tiger Global Management also invested in the round, along with existing investors Accel, Bessemer, Coatue, Corner Ventures, and Latitude. The new funds will be used to speed up the company’s expansion through partnerships with leading financial institutions, software providers, and marketplaces interested in enabling B2B payments for their customers.
Melio, which was founded by CEO Matan Bar, Ziv Paz, and Ilan Atias, enables businesses to pay suppliers directly from within the QuickBooks accounting software, which is popular among small businesses in the US. It does not collect a commission on transfers between bank accounts, but if a business wants to pay suppliers on credit, it is charged a 2.9% commission, and Melio transfers the money to the suppliers with its own check. Melio thus helps businesses pay on credit; that is with a payment that is not immediate but happens once a month - while it pays the suppliers by check, which many of them prefer since it does not involve a commission. Melio has seen its monthly processing volumes by 5,000%, over the last 18 months,
Bar said, "2021 has been a year of rapid growth for Melio. We found ourselves in a fortunate position to support small businesses more than ever before, helping them digitize their vendor payment operations, saving them valuable time, and maximizing their cash flow."
Melio also announced that General Catalyst Chairman and Managing Director Ken Chenault, the former chairman and CEO of American Express, will join Melio’s board as an observer.
Published by Globes, Israel business news - en.globes.co.il - on September 14, 2021
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