Israeli digital payments firm Melio, which specializes in developing payment platforms for small businesses, announced on Tuesday that it has raised USD 250 million in a Series D round of funding.
In a statement, the company said the recent capital had tripled the company’s valuation to USD 4 billion. In January this year, an injection of USD 110 million had pushed the firm’s worth to unicorn status at approximately USD 1.3 billion.
Melio has grown its monthly processing volumes by some 5,000% in the previous 18 months. Its CEO and co-founder Matan Bar said 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. The firm helps with cash flow needs by reducing or eliminating late payment costs and cutting down on the time that businesses spend dealing 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, an 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 is by integrating with some of the nation’s leading financial services and SaaS companies.
The article was originally published by NoCamels, a leading news website covering breakthrough innovation from Israel for a global audience.