Melio to Grow AP/AR Platform With $150 Million Fundraise
Melio raised $150 million in a Series E funding round to fuel the growth of its accounts payable (AP) and accounts receivable (AR) platform by expanding its B2B partnerships.
The company has seen its revenue increase tenfold over the past three years, driven by an expansion of its customer base to include medium-sized businesses as well as small ones and by the launch of new partnerships, Melio said in a Thursday (Oct. 31) press release.
“We’re proud to witness our embedded solution helping our partners better service their business clients, leading to increased deposits, higher engagement and creating new revenue streams,” Melio CEO and co-founder Matan Bar said in the release.
The company’s platform helps small- to medium-sized businesses (SMBs) and their accountants maximize cash flow and reduce the amount of time spent managing their payment operations, according to the release.
Melio’s latest funding round was led by Fiserv, which partnered with the company last year to combine Melio’s AP and AR workflows with Fiserv’s payment capabilities and biller and merchant network, the release said.
The companies’ combined solution, CashFlow Central, enables financial institutions to better meet the payment operations and cash flow needs of SMBs, per the release.
“We are excited to leverage our unique position at the intersection of financial institutions and businesses to deliver a comprehensive, integrated experience that enables our clients to compete and grow their portfolios with this important segment of their communities,” John Gibbons, head of financial institutions group at Fiserv, said in the release.
Ninety-one percent of mid-sized firms that have fully automated AR systems report increased savings, cash flow and growth, according to the PYMNTS Intelligence report “Accounts Payable and Receivable Trends: What’s Next in Automation.”
The study found that full automation of AP and AR processes allows firms to cut labor costs and reduce the occurrence of errors.
In September, Melio integrated with the Amazon Business Reconciliation API to help businesses save time by synchronizing Amazon Business invoices into a single payment processing system.
The companies said at the time that the automation of these tasks can also enhance businesses’ relationships with suppliers and contractors by speeding invoice payments.
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