Melio, the B2B digital payments company for small and medium-sized businesses (SMBs), has raised $144 million since its inception two years ago, the company announced Tuesday (Sept. 8).
Last month, the New York-based firm raised $80 million in Series C funding, on top of raising $48 million in a Series B round in March and $16 million in Seed/Series A funding in 2019.
“At a time when small businesses need the most flexibility, they have the least,” said CEO Matan Bar in a statement. “Our mission is to keep small businesses in business ... Business payments shouldn’t be more complicated than paying a friend with your phone.”
The fundraising has allowed Melio to accelerate growth and reach more customers, the company said. It is also intended to support the company’s plans to provide B2B payment capabilities to third parties.
Melio has attracted a long list of investors that have led the fundraising rounds including Accel, the California early and growth-stage venture capital firm; Aleph Capital Partners LLP, an independent investment firm based in London; Bessemer Venture Partners, the San Francisco venture capital firm; Coatue Management, a technology sector hedge fund headquartered in New York; General Catalyst, a Massachusetts venture capital firm focused on early stage and growth investments; with participation from LocalGlobe, a London-based venture capital firm.
In addition, Corner Ventures, a Palo Alto, California-based investor and California startup investors American Express Ventures have been part of its fundraising efforts.
From March through August 2020, Melio said its payments volumes have increased by 700 percent, as SMBs confronted with the challenges of COVID-19 turned to new technologies to manage their finances remotely.
Melio recently partnered with Intuit Quickbooks, the accounting software platform for small businesses, to power one of its bill pay solutions.
“We are living in unprecedented times,” said Ken Chenault, General Catalyst’s chairman and managing director, in a statement. “Melio provides the tools to achieve both and will play a critical role with small businesses and vendors to continually adapt, develop, and persist.”
Earlier this year, Bar told PYMNTS the emerging technologies designed to accelerate invoice processing, optimize payment strategies and promote digital adoption have been a challenge for the mom-and-pop shop on Main Street.
“We talked with more than 100 small business owners across industries, and almost none used an accounts payable automation solution,” Bar said. “They either stuffed envelopes with checks and licked stamps or they used their bank’s bill payment tool, which is too simple and archaic.”