Melio

Company Overview

Snapshot

Founded in January 2018 by Matan Bar, Ilan Atias, and Ziv Paz, Melio operates with over 600 employees. The company has successfully raised $654 million across 6 funding rounds from 14 investors. In June 2025, Melio was acquired by Xero Limited, marking a significant exit in the fintech sector.

Business overview

Melio offers a smart B2B payment solution specifically designed for small businesses. Its core product is a digital accounts payable and receivable dashboard that provides an integrated tool for businesses to manage payments efficiently. This platform enables quick and easy transfers, offers comprehensive oversight and control over cash flow, and helps eliminate late payment costs. Melio serves small and medium-sized businesses in the United States, operating within the Fintech & Insurtech sector, with a focus on money transfer and management through mobile and web platforms.

Strategic signal

In June 2025, Melio was acquired by New Zealand-based Xero Limited for up to $3 billion, including $2.5 billion upfront and $500 million in contingent payments. This acquisition is a major strategic move for Xero, significantly enhancing its presence in the U.S. small business payments market by integrating Melio's advanced payment capabilities. For investors, this signals a successful exit for Melio's founders and early investors like Bessemer Venture Partners and Aleph, while also highlighting the ongoing consolidation and strategic value within the fintech sector.

Company Intelligence Q&A

What was the most significant recent corporate development for Melio?

In June 2025, Melio was acquired by Xero Limited for up to $3 billion. This transaction included $2.5 billion upfront and an additional $500 million in contingent payments over three years, primarily aimed at retaining Melio’s 600 employees.

What was Melio's last disclosed funding round?

In October 2024, Melio raised $150 million in a financing round led by Fiserv, valuing the company at $2 billion. This round also saw participation from Accel and Thrive Capital

What was the impact of the acquisition on Melio's workforce?

The acquisition by Xero Limited in June 2025 included a provision for up to $500 million in contingent payments over three years, primarily aimed at retaining Melio’s 600 employees. However, prior to the acquisition, in March 2024, Melio had laid off approximately 7% of its workforce, around 40 employees in Israel, as part of an organizational restructuring.

Did Melio experience any valuation changes prior to the acquisition?

Yes, in February 2025, reports indicated that Melio, along with other Israeli fintech companies, experienced reduced valuations. This followed a previous valuation of $4 billion in September 2021, which then dropped to $2 billion in October 2024 during its last funding round.

What strategic partnerships has Melio established?

Melio has formed several key partnerships to expand its reach. In April 2023, Melio partnered with Shopify to launch Shopify Bill Pay, integrating its software directly into the e-commerce platform. In January 2023, Melio launched an integration with Xero, allowing small business customers to sync accounts payable and receivable data. Additionally, in July 2022, Melio partnered with Capital One Business to offer an integrated accounts payable solution for small business cardholders.