B2B payments platform Melio has reached a $4 billion valuation after announcing it had raised an additional $250 million in a funding round, according to a press release on Tuesday (Sept. 13).
The funding will help the company partner with new financial institutions, software providers and marketplaces, per the release.
Melio allows companies to send and receive near-instant payments for their customers, using accounts payable and receivable technology to ensure seamless transactions. Thirty-one percent of businesses said that using new technologies had helped them operate during the COVID-19 pandemic, according to a Melio survey cited in the release.
The company is experiencing growth and has increased its monthly processing volumes by 5,000% over the last 18 months.
“2021 has been a year of rapid growth for Melio. We found ourselves in a fortunate position to support small businesses more than ever before, helping them digitize their vendor payment operations, saving them valuable time and maximizing their cash flow,” said Melio CEO and Co-founder Matan Bar, per the release.
The company has received support in the Series D funding round from New York-based investor Thrive Capital and existing investor General Catalyst. U.S. investment firm Tiger Global Management contributed to the round, with existing investors Accel, Bessemer, Coatue, Corner Ventures and Latitude, the release stated.
In January, Melio had raised $110 million in a funding round. In August, news broke that Melio might reach a $4 billion valuation with its new round — which has now happened.
The appetite for fintech investing has been ongoing, and U.S. startups have done well this year, raising a total of $29 billion, which was almost double the amount from the previous year’s $15 billion.
Melio has also recently partnered with Capital One to boost access for accounts payable (AP) and accounts receivable (AR) services.