Fintech unicorn Melio on verge of being acquired in $2 billion deal

Israeli fintech company Melio is in advanced negotiations to be acauried for between $1.5 billion and $2 billion, Calcalist has learned. In October 2024, the company raised a $150 million Series E at a valuation of approximately $2 billion, a notable drop from its previous round, which valued the company at nearly double that amount.

The 2024 funding round was led by digital banking services giant Fiserv, with participation from Shopify, Capital One, Frontline Ventures, and existing investors Accel, Bessemer, Coatue, General Catalyst, Latitude, and Thrive Capital.

That same year, Melio laid off several dozen employees in Israel, following an earlier wave of layoffs in the United States as part of a broader restructuring of its sales and marketing operations.

Despite the valuation cut, the Israeli fintech is estimated to have registered a tenfold revenue increase since its previous round in August 2021. Melio crossed the $100 million mark in annual recurring revenue (ARR) in 2023, reaching it within three years of achieving $10 million in revenue.

If the deal goes through, it would mark the second significant exit in the fintech sector in recent months, following the acquisition of Next Insurance by Munich Re. The fintech industry has faced considerable headwinds over the past two years, including tightening venture capital, declining valuations, and shifting market dynamics.

Founded in 2018, Melio is led by CEO and co-founder Matan Bar, CTO and co-founder Ilan Atias, and President Tomer Barel. The company employs around 600 people, with approximately 400 based in its Israel offices and the rest in the U.S. Melio has developed an advanced digital platform enabling a range of payment solutions for businesses in the U.S., providing an overlay on top of basic services offered by partners, including financial institutions and software companies.