Melio Raises $150 Million in Series E Funding to Enhance B2B Payment Solutions
Melio, a leader in payments and financial technology, has raised $150 million in its Series E funding round, led by the global fintech company Fiserv. Other notable participants include Capital One Ventures, Shopify Ventures, Accel, Bessemer, Coatue, Thrive Capital, Frontline Ventures, Latitude, and General Catalyst.
Funding Details and Valuation Impact
The recent funding places Melio’s valuation at $2 billion, a decrease from its $4 billion valuation during its Series D round in 2021. Despite this, Melio has achieved a tenfold revenue increase over the past three years, now surpassing $100 million in annual recurring revenue (ARR). This growth is attributed to:
- An expanded customer base that now includes medium-sized businesses
- New partnerships enhancing its service offerings
Strategic Growth Plans
Melio plans to leverage the new capital to drive growth, particularly through new partnerships. The company aims to strengthen its collaboration with Fiserv, especially with the success of their joint solution, CashFlow Central. This platform integrates Melio’s AP and AR capabilities into Fiserv’s extensive payment processing network, supporting over 3,500 financial institutions in serving SME clients more effectively.
Co-founder and CEO Matan Bar emphasized that these partnerships are instrumental in enhancing services for business clients. According to him, Melio’s embedded solutions contribute to increasing deposits and customer engagement while creating new revenue streams for financial institutions.
Technological Innovations
Founded in 2018 and based in New York, Melio offers a comprehensive suite of services designed to streamline payment processes for SMEs. Key features include ACH transfers and automatic recurring bill payments, which are essential for effective cash flow management. By integrating with financial institutions and e-commerce platforms, Melio provides a seamless experience that saves businesses time while optimizing their payment workflows.
Recently, Melio introduced the Amazon Business Reconciliation API, which consolidates all Amazon invoices into a single payment processing system, further enhancing business efficiency.
Market Positioning
With a focus on automating accounts payable and receivable, Melio is well-positioned in the rapidly evolving fintech landscape, particularly as the B2B payments sector undergoes transformation. The company’s commitment to innovation is evident through its partnerships and product advancements aimed at addressing the diverse needs of SMEs across the United States.
This latest funding round highlights growing confidence in Melio’s business model and reflects the increasing demand for efficient payment solutions among small and medium enterprises.
