- Melio — a company that helps small businesses digitally manage their supplier payments — announced it has raised $110 million in funding. These are the details.
Melio — a company that helps small businesses digitally manage their supplier payments — announced it has raised $110 million in funding to expand its offering across the US as the small business shift to digital solutions accelerates. And Melio’s latest funding round (led by Coatue) brings Melio’s total funding to $240 million in 2020, giving it a valuation of $1.3 billion.
Investors from previous rounds include Accel, Aleph, Bessemer Venture Partners, Corner Ventures, General Catalyst, and Latitude. Plus Salesforce and American Express Ventures also invested in 2020, which further solidified both companies’ interests in the small business economy.
Melio’s monthly active users increased by more than 2,000% last year — which is a sign that small businesses are increasingly adopting digital solutions to mitigate against the effects of COVID on their bottom line. And Melio provides a single integrated tool that allows small businesses to transfer and receive payments in a faster and easier way by giving oversight and control over cash flow, reducing or eliminating late payment costs, and giving businesses back valuable time.
According to a survey of 1,000 small business owners (conducted by OnePoll and commissioned by Melio), 31% of small business owners said embracing new technology helped their business during COVID-19.
KEY QUOTES:
“Getting better control over cash flow and the ability to manage payments remotely –and small business digitization is here to stay– are key elements of a business’ health, and that process shouldn’t be complicated. We see this fundraising as a great privilege and responsibility to support small businesses during these challenging times.”
— Melio CEO and co-founder Matan Bar, a former PayPal Holdings executive
“Melio has identified both the opportunity and duty to help small businesses manage their finance remotely & improve cash flow, in normal times as well as during this crisis, as physical payments supply chains are interrupted and overwhelmed. Going digital is the only way small businesses can compete against larger rivals and stay ahead of the curve.”
— Michael Gilroy, General Partner at Coatue
