Israeli fintech company Melio is close to being bought for about $2 billion, according to the media. The company looking to buy Melio is Xero, a fintech firm from New Zealand. Xero is a large company with a market value of around $20 billion.
In October 2024, Melio raised $150 million in a Series E funding round. At that time, the company was valued at around $2 billion, which was a significant drop compared to its earlier valuation—almost twice as much in the previous round.
Fiserv, a major digital banking company, led Melio’s 2024 funding round. Other big names like Shopify, Capital One, Frontline Ventures, and existing investors such as Accel, Bessemer, Coatue, General Catalyst, Latitude, and Thrive Capital also took part in the round.
In the same year, Melio let go of several dozen employees in Israel. This happened after they had already laid off some workers in the United States. These job cuts were part of a bigger plan to reorganize their sales and marketing teams.
Even though Melio’s value went down, the company’s revenue has grown a lot. Since its last funding round in August 2021, Melio’s revenue has increased by about ten times.
In 2023, Melio made over $100 million in yearly recurring revenue (ARR). It reached this milestone just three years after hitting $10 million in revenue.
If the deal happens, it would be the second major sale in the fintech world in recent months—after Munich Re bought Next Insurance.
The fintech industry has had a tough time over the last two years, with less venture capital money, lower company valuations, and changing market conditions.
Melio was founded in 2018 and is led by CEO and co-founder Matan Bar, CTO and co-founder Ilan Atias, and President Tomer Barel. The company has about 600 employees, with around 400 in Israel and the rest in the U.S.
Melio has built an innovative digital platform that helps U.S. businesses make and manage payments more easily. It adds extra features on top of the basic services offered by banks and software companies, making payments faster and simpler.
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