Melio secures $150 million in Series E funding, adjusting valuation to $2 billion

Israeli fintech company Melio has raised $150 million in a Series E funding round, with its valuation adjusted to $2 billion. This follows its previous $250 million raise three years ago, which valued the company at $4 billion. Despite the lower valuation, Melio is estimated to have achieved significant growth, with its revenue increasing approximately tenfold since its last raise in August 2021. The company surpassed $100 million in annual recurring revenue (ARR) within three years after hitting the $10 million ARR mark.

The funding round was led by digital banking powerhouse Fiserv, with additional participation from Shopify, Capital One, Frontline Ventures, and previous backers including 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 about 600 people, with 400 based in Israel and the remaining team in the U.S. Melio has developed a digital platform that enhances payment solutions for U.S. businesses, operating as an overlay on services provided by partner financial institutions and software companies.

Melio’s collaboration with Fiserv has been instrumental in expanding its reach. In their latest partnership, the two companies introduced Cashflow Central, a sophisticated payment portal that Fiserv will deploy across hundreds of banks throughout the U.S. In addition, Melio’s platform supports various businesses in streamlining payment processes through partnerships with companies like Shopify and Capital One.

Previously, Melio was rumored to be in acquisition talks with Bill Holdings at a valuation of $1.95 billion, but Bill Holdings dismissed these claims, confirming it had no acquisition intentions.