Melio secures $150 million in Series E funding, valuation slashed to $2 billion
Melio secures $150 million in Series E funding, valuation slashed to $2 billion
Despite the valuation cut, the Israeli fintech is estimated to have registered a tenfold revenue increase since its last raise three years ago, now exceeding $100 million annually.
After raising $250 million three years ago at a valuation of $4 billion, fintech company Melio has secured $150 million in a Series E funding round at a $2 billion valuation, Calcalist has learned.
Despite the valuation cut, the Israeli fintech is estimated to have registered a tenfold revenue increase since its previous round in August 2021. Last year, Melio crossed the $100 million mark in annual recurring revenue (ARR), reaching it within three years of achieving $10 million in revenue.
This Series E round was led by digital banking services giant Fiserv, with participation from Shopify, Capital One, Frontline Ventures, and existing investors Accel, Bessemer, Coatue, General Catalyst, Latitude, and Thrive Capital.
Founded in 2018, Melio is led by CEO and co-founder Matan Bar, CTO and co-founder Ilan Atias, and COO and President Tomer Barel. The company employs around 600 people, with approximately 400 based in its Israel offices and the rest in the U.S. Melio has developed an advanced digital platform enabling a range of payment solutions for businesses in the U.S., providing an overlay on top of basic services offered by partners, including financial institutions and software companies.
Last year, Melio and Fiserv launched a partnership with the creation of Cashflow Central, an advanced payment portal that Fiserv will offer to hundreds of banks across the U.S. Melio’s solutions are already helping numerous U.S. businesses and their suppliers streamline their payment processes efficiently through collaborations with Shopify and Capital One.
Melio was rumored to be in negotiations to be acquired last year by Bill Holdings at a valuation of $1.95B. Bill Holdings denied any such intention.
