Melio, a US-based payment technology provider backed by payment services firm American Express and enterprise software supplier Salesforce, raised $110m yesterday in a round led by investment manager Coatue.
Existing investors including Accel, Aleph, Bessemer Venture Partners, Corner Ventures, General Catalyst and Latitude reinvested in the round, which brought the company’s overall funding to $240m and lifted its valuation to $1.3bn.
Founded in 2018, Melio provides a software tool that helps small companies manage business-to-business (B2B) payments including invoice settlement with external suppliers and contractors.
The company’s monthly active users increased by some 2,000% last year, which was likely due to business digitalisation accelerated by covid-19-related measures, it said.
American Express Ventures, the corporate venturing arm of American Express, had participated in an $80m series C round for Melio in August 2020 and a $48m series B six months earlier alongside Accel, Aleph, Bessemer Venture Partners, Coatue, General Catalyst, LocalGlobe and Corner Ventures.
Salesforce was also identified by Melio as a 2020 investor. The company’s earlier $16m in funding took place the year before, across seed and series A rounds featuring undisclosed backers.
Melio CEO and co-founder Matan Bar said: “Getting better control over cash flow and the ability to manage payments remotely – and small business digitisation is here to stay – are key elements of a business’s health, and that process should not be complicated.
“We see this fundraising as a great privilege and responsibility to support small businesses during these challenging times.”
