In a significant move poised to reshape payment operations for small and medium-sized enterprises (SMEs), Melio has successfully secured $150 million in a Series E funding round led by Fiserv. The funding round attracted a remarkable array of investors including Capital One Ventures, Shopify Ventures, Accel, Bessemer, Coatue, Thrive Capital, Frontline Ventures, Latitude, and General Catalyst. Established in 2018 and based in New York, Melio offers a platform specifically designed to streamline cash flow management for SMEs by integrating accounts payable (AP) and accounts receivable (AR) solutions. Key features like ACH transfers and recurring bill payments enable businesses to optimize their cash flow and significantly reduce the amount of time spent on payment operations.
The influx of $150 million in new funding is set to turbocharge Melio’s growth trajectory through the development of new partnerships and the enhancement of existing collaborations, such as its ongoing relationship with Fiserv. Previously, Melio and Fiserv introduced the CashFlow Central solution to streamline AP and AR processes for SMEs, improving efficiency and accuracy. Despite the company’s valuation reducing to $2 billion from a previous high of $4 billion during a 2021 $250 million Series D round, Melio reports a stunning ten-fold increase in revenue since then. The remarkable revenue surge is attributed to an expanding customer base that now includes medium-sized businesses and the formation of new strategic partnerships that have extended the platform’s reach and utility.
The latest funding aims not just at maintaining this momentum, but at accelerating it. Melio is dedicated to using these resources to develop more innovative solutions that address the evolving needs of SMEs. Enhanced features and integrations will provide small and medium-sized businesses with the tools they need to handle cash flow challenges more efficiently, particularly in an economic climate that places a premium on operational efficiency and financial agility. Through these advancements, Melio is poised to become an indispensable ally for SMEs navigating the complexities of modern financial operations.
Ultimately, Melio’s recent funding is expected to pave the way for pioneering new solutions and broadening SME support, positioning itself as a leader in payment operations innovation. The strategic investments underscore the importance of bolstering SMEs’ financial infrastructure, offering a blend of stability and growth potential in an increasingly digital economy.
