Startup Melio raises US$144m to fund expansion

[NEW YORK] Melio, a payments startup focused on small businesses and backed by investors including American Express Ventures and Bessemer Venture Partners, has raised US$144 million to fund new hires.

The New York-based firm, founded in 2018, plans to use the funds to hire more engineers and sales staff, according to a statement on Tuesday. Melio also intends to collaborate with more bookkeeping services, such as the company's partnership with Intuit Quickbooks.

The company is looking to seize a greater slice of the US market for payments between businesses, which stands at roughly US$25 trillion a year, according to a Mastercard presentation. While the segment has become increasingly digital over the last 15 years, more than 40 per cent of business payments are still processed with cheques, according to a report by the Association for Financial Professionals and underwritten by JPMorgan Chase & Co last year.

"Business payments shouldn't be more complicated than paying a friend with your phone," Matan Bar, Melio co-founder and chief executive officer, said in a statement.

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