US payments firm Melio raises $80m in Series C funding round
Digital payments provider Melio has raised $80 million in Series C funding to boost its business-to-business platform.
The firm will use its new cash to accelerate growth and reach more customers. It will also support the company’s plans to provide business-to-business (B2B) payment capabilities to third parties.
Melio was founded in 2018 by CEO Matan Bar, CTO Ilan Atias and COO Ziv Paz. It allows businesses to pay their bills for free using a bank transfer or debit card.
Businesses can also use a credit card for a tax-deductible fee if suppliers don’t accept cards. Suppliers in turn receive a paper cheque or bank transfer and don’t need to sign up.
According to a study from the Association for Financial Professionals, 42% of B2B payments in the US are still made with paper cheques. Mastercard data reports the market is worth as much as $25 trillion per year.
Melio has raised $144 million since launch. Its last round netted the company $58 million in a round led by Accel.
“Our mission is to keep small businesses in business,” says Matan Bar, co-founder and CEO of Melio.
“We do this by allowing small businesses to manage payments remotely, paying when and how they want, giving them more control and helping businesses manage cash flow.
“Business payments shouldn’t be more complicated than paying a friend with your phone.”