Melio, a US-based payment software provider Melio backed by payment processing firm American Express and enterprise software provider Salesforce, received $250m yesterday in a series D round that brought its valuation to $4bn.
Thrive Capital co-led the round with General Catalyst while Tiger Global Management, Accel, Latitude, Corner Ventures, Coatue and Bessemer Ventures Partners (BVP) also invested, boosting the company’s total funding to almost $500m.
Melio has created a software platform that allows small businesses to efficiently transfer and receive payments from external suppliers and contractors. It will use the funding to expand its operations through partnerships with software providers, financial institutions and marketplaces.
The company has formed a number of collaborations over the past year, including a June deal with financial services firm Capital One to give small business customers expanded access to cash flow management tools and an earlier partnership with financial software provider Intuit for better business payment capabilities through the latter’s QuickBooks accounting software.
Coatue led a $110m round for Melio in January this year that also featured Accel, Aleph, BVP, Corner Ventures, Latitude and General Catalyst, valuing it at $1.3bn.
The January round followed an $80m series C round in September 2020 backed by American Express’s VC unit, American Express Ventures, as well as Accel, Aleph, BVP, General Catalyst, Coatue, Corner Ventures and LocalGlobal. They had also taken part in a $48m series B seven months earlier.
Matan Bar, co-founder and chief executive of Melio, 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 digitise their vendor payment operations, saving them valuable time and maximising their cash flow.”
