B2B payments platform for small businesses Melio has collected $250m in a funding round, which puts its valuation at $4bn – tripling since January 2021.
The Series D round was co-led by Thrive Capital and General Catalyst. Other commitments to the round came from Tiger Global Management, Accel, Bessemer, Coatue, Corner Ventures and Latitude.
Melio’s growth has grown tremendously over the past 18 months, with its monthly processing volumes increasing by 5,000%.
Funds from the Series D will continue this growth and expansion through partnerships with financial institutions, software providers and marketplaces looking to enable B2B payments.
The FinTech company offers small businesses an integrated solution to easily transfer and receive payments to reduce stress on cashflow and late payment costs. A recent study from Melio found that around 31% of small business owners felt adopting technology helping their business during Covid-19. Melio’s technology hopes to do just that and optimise financial health within companies.
As part of the deal, General Catalyst chairman and managing director Ken Chenault will join Melio’s board of directors as an observer.
Chenault said, “Melio is leveling the playing field for small businesses, empowering them with solutions focused on cash flow and workflow issues, which are critical for small business owners.
“Most importantly, I am very excited about the opportunity that lies ahead of them as one of the fastest growing companies in the small business payments space.”
Melio only joined the unicorn club in January 2021, after a $110m funding round put its valuation at $1.3bn. The investment was supported by Coatue, Accel, Aleph, Bessemer Venture Partners, Corner Ventures, General Catalyst and Latitude. The round was raised to support its expansion in the US.
The company recently teamed up with Capital One to increase access to accounts payable and receivable cash flow management tools for customers.
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