With the latest financing, the total investment in the company reaches $240m, and the company’s total valuation reaches $1.3bn
Melio, a digital payments solution provider for small businesses, has secured an additional $110m in a funding round, led by Coatue, to expand its operations across the US.
Existing investors including Accel, Aleph, Bessemer Venture Partners, Corner Ventures, General Catalyst, and Latitude also participated in the funding round.
With the latest financing, the total investment in the company reaches $240m, and the company’s total valuation reaches $1.3bn.
Melio CEO and co-founder Matan Bar said: “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 offers a single, integrated solution that facilitates small businesses to rapidly and easily transfer and receive payments. The solution will provide oversight and control over cash flow, preventing late payment costs, and saving time for businesses.
The company said that its monthly active users (MAU) increased by more than 2,000% in 2020, which indicates that small businesses are highly adopting digital solutions to address the effects of the pandemic.
According to OnePoll survey of 1,000 small business owners, commissioned by Melio, 31% of small business owners used new technology to enhance their business during Covid-19.
Furthermore, Salesforce and American Express Ventures also invested in 2020, to strengthen their interests in the small business economy.
Coatue general partner Michael Gilroy said: “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.”