Israeli financial technology company Mélio Solutions Inc. announced today that it has raised $150 million in new funding at a valuation of $2 billion to fuel its growth through strategic partnerships and enhance its accounts payable and receivable platform for small and mid-sized businesses.

Founded in 2018, Melio offers a digital payments platform designed to simplify business-to-business transitions for small and medium-sized businesses. The platform allows businesses to manage both accounts payable and receivable through an easy-to-use interface and offers flexible payment options that help businesses optimize cash flow and improve supplier relationships.

Melio offers several payment options, including ACH bank transfers and credit card payments, allowing businesses to pay their suppliers even if they don’t accept credit cards. Flexibility is a key part of the company’s offering, helping businesses manage their cash flow more effectively by allowing them to choose the payment method best suited to their financial needs.

The company’s platform integrates with existing accounting software, such as QuickBooks, to make it easy for users to keep their books up to date. The platform also offers approval workflow functionality that gives teams the ability to add multiple approvers, customize approval rules, and reduce errors in the payment process, helping to improve internal control and accountability, particularly for SMEs with growing financial needs.

In addition to its core payment solutions, Melio offers expedited payment options, such as instant transfers and same-day payments, that enable businesses to meet urgent supplier deadlines. According to Melio, this feature helps businesses maintain strong relationships with their suppliers by ensuring that payments arrive on time, even in urgent situations.

Fiserv Inc. led the Series E round, with participation from Accel Partners Management, Bessemer Venture Partners LP, Coatue Management, Frontline Ventures Ltd., General Catalyst Group Management, Latitude Ventures LLP and Thrive Capital Management.

Notably, Fiserv and Melio have a prior relationship, with the two partnering to integrate Melio’s payment capabilities into Fiserv’s Clover point-of-sale systems last year. The resulting product, called CashFlow Central, has enabled Fiserv’s more than 3,500 financial institution customers to better serve the payment operations and cash flow needs of their small and mid-sized business customers and members.

“Through our partnership with Melio, CashFlow Central is designed to create significant value for financial institutions and their customers or business members,” John Gibbons, head of the Financial Institutions Group at Fiserv, commented. “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.”

Image: Mélio