Digital payment startup Melio raises $144M
The New-York-based startup Melio, a provider of digital payment solutions for small businesses in the US since 2018, has received $144 million from Aleph, American Express Ventures, and Bessemer Venture Partners, reports NoCamels.
Melio is a free digital accounts payable & receivable solution for small businesses in the US that helps to get more control over the finances, improve cash-flow and simplify the paperwork process.
“When a small business needs to pay a supplier, it has to go to its back office, which then sends off a cheque, by mail, to the supplier. In the US, the annual scope of these types of transactions is between $14 and $17 trillion dollars. That makes no sense since the same person will send money to a friend using a digital service,” the CEO of Melio Matan Bar explains.
The company offers its paying services for free using ACH bank transfers, or 2.9% fee for credit card payment. The platform processes each payment and delivers it to vendors, suppliers, and other business payment recipients via mailed paper checks, or bank deposits.
Despite the fact that a lot of Melio’s clients closed their businesses, the company’s solution became popular among the businesses that moved online. Melio has experienced 700% growth since March.
Melio is planning to use the attracted funds to hire more engineers and sales staff, as well as expanding its collaboration with more bookkeeping services including Quickbook, its current partner.