Israeli digital payments firm Melio, which specializes in developing payment platforms for small businesses announced Tuesday that it has raised another massive sum – $250 million – in a Series D round of funding.
In a statement, the company said the input of the additional capital had tripled the company’s valuation to $4 billion, since a January 2021 injection of $110 million had pushed the firm’s worth to unicorn status at approximately $1.3 billion.
Melio has grown its monthly processing volumes by some 5000 percent in the previous 18 months. It’s CEO and co-founder Matan Bar admitted that “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.”
The company, which has headquarters in the United States in New York and Colorado and an R&D center in Tel Aviv, provides a single, integrated solution that allows small businesses to quickly transfer and receive payments – helping with cash flow needs, reducing or eliminating late payment costs, cutting down on the time that businesses spend with bureaucracy. A survey carried out by Melio found that 31% of small business owners said embracing new technologies helped their business during COVID-19.
“Melio has been a critical partner for small businesses as they navigated the financial constraints of the pandemic-induced economic downturn,” said Vince Hankes, Investor at Thrive Capital, one of the new investors in the Series D round of funding. “For many, the ability to implement and adopt these digital payment solutions has been the key to keeping their doors open – proving that digital payment platforms are critical to small business growth.”
One of the ways that Melio is able to enhance its range of products to clients is by integrating with some of the nation’s leading financial service and software as a service (SaaS) companies.