B2B Payments Startup Melio Reaches $1.3B Valuation Following $110M Series C2

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Melio, a fintech institution with a beingness successful New York and Israel, is giving tiny businesses a mode to digitally negociate their business-to-business payments and receivables.

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“We are an accounts payable and accounts receivable instrumentality to alteration them to wage immoderate vendors and besides fto them get paid by concern customers,” Melio co-founder and CEO Matan Bar told Crunchbase News.

After raising an $80 cardinal Series C circular backmost successful September, led by Coatue and General Catalyst, Coatue is starring a caller circular of $110 cardinal successful what Bar calls a “Series C2.”

The latest backing circular takes wide superior raised since the institution was founded successful 2018 to $256 million, giving the institution a valuation of $1.3 billion, Bar said. Of that amount, $240 cardinal was raised successful 2020 alone. In summation to Coatue and General Catalyst, investors from erstwhile rounds see Accel, Aleph, Bessemer Venture Partners, Corner Ventures, Latitude, Salesforce 1 and American Express Ventures.

The B2B wholesale payments industry, which includes businesses paying their suppliers for goods and services, is valued astatine $25 trillion successful the U.S., which accounts for 42 percent of B2B transactions. These payments are mostly inactive made with insubstantial checks, said Bar, who was antecedently a PayPal executive.

The displacement to integer successful galore industries was accelerated by the planetary pandemic, but Bar said the B2B payments abstraction has been dilatory to follow, and Melio is retired to alteration that, helium added. Its users reduced insubstantial cheque payments by 50 percent successful 2020, compared with the 4 percent to 8 percent diminution betwixt 2003 and 2018, according to Federal Reserve data.

“More than $14 trillion of payments are transferred via insubstantial checks successful the U.S.,” Bar said. “It is not declining much, but however tin the aforesaid idiosyncratic usage an app similar PayPal to transportation wealth to a friend, but spell into the backmost bureau of their concern and worldly envelopes with checks?”

In 2020, Melio’s monthly progressive users grew by much than 2,000 percent, which Bar attributes to being successful the close spot astatine the close clip arsenic tiny businesses weathered the pandemic and economy.

The caller backing volition beryllium utilized to enactment maturation and proceed to physique retired a level that volition alteration partners to connection B2B payments to their clients. Bar said QuickBooks is an example: Users volition beryllium capable to not lone adhd their bills, but besides wage their bills from the QuickBooks platform, which is powered by the Melio platform.

Michael Gilroy, wide spouse astatine Coatue, said successful a written connection that “going digital” is 1 of the ways that volition support tiny businesses “ahead of the curve” and successful contention with larger rivals.

“Melio has identified some the accidental and work to assistance tiny businesses negociate their finances remotely and amended currency flow, successful mean times arsenic good arsenic during this crisis, arsenic carnal payments proviso chains are interrupted and overwhelmed,” helium added.

Illustration: Li-Anne Dias

  1. Salesforce Ventures is an capitalist successful Crunchbase. They person nary accidental successful our editorial process. For more, head here.↩

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