Israeli B2B payments platform Melio has completed a $110 million financing round, led by Coatue at a valuation of $1.335 billion. Previous investors Accel, Aleph, Bessemer Venture Partners, Corner Ventures, General Catalyst, Latitude, and LocalGlobe. Salesforce and American Express Ventures also participated in the financing round, bringing to $240 million the amount raised by the company, which was selected as one of “Globes” 10 best startups of 2020.
The company, which helps small businesses digitally manage their supplier payments, was founded in 2018 by CEO Matan Bar, CTO Ilan Atias and COO Ziv Paz. The new funds will enable the company to expand marketing in the US as the shift by small and medium-sized business to digital channels speeds up during the Covid pandemic.
Since it launched to customers in May 2019 Melio has grown rapidly, processing multi-billion dollar payment volumes. The company’s monthly active users (MAU) grew by over 2,000% in 2020 – a sign that small businesses are increasingly adopting digital solutions not only to get paid by their customers (B2C), but also how they pay their suppliers (B2B). According to a survey of 1,000 small business owners, carried out by OnePoll and commissioned by Melio, thirty-one percent of small business owners said embracing new technology helped their business during COVID-19.
Bar said, “Getting better control over cash flow and the ability to manage payments remotely, especially in a socially distant world, are key elements of a business’ health, and that process shouldn’t be complicated.”
“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,” said Coatue general partner Michael Gilroy.
Published by Globes, Israel business news – en.globes.co.il – on January 25, 2021
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