Israeli financial technology company Melio has raised $150 million in a Series E funding round, securing a valuation of $2 billion in a transaction led by Fiserv, the United States payments and financial technology group. The deal was announced on 31 October 2024; Melio's business is built around automating accounts payable and receivable for small and medium-sized enterprises.
The round also drew new investors Shopify Ventures and Capital One Ventures alongside existing backers including Accel, Bessemer Venture Partners, Coatue, Frontline Ventures, General Catalyst, Latitude and Thrive Capital.
PLATFORM TARGETS SME PAYMENTS AUTOMATION
Melio's platform is designed to remove the administrative burden of managing payments between businesses. Its software automates the processes of accounts payable and accounts receivable, enabling small businesses to pay suppliers and collect from customers.
The company operates primarily in the United States market.
The company previously underwent layoffs as the funding environment tightened from 2022 onwards. The $2 billion valuation is half the $4 billion Melio achieved in its 2021 round, although the company said revenue had grown tenfold since then.
FISERV PARTNERSHIP
Fiserv serves banks, credit unions and merchants. The two companies already work together: in 2023 they launched CashFlow Central, which combines Melio's payables and receivables workflows with Fiserv's payments capabilities and is offered to more than 3,500 Fiserv financial-institution clients.
Melio said the funding would help fuel the company's growth through partnerships.