Melio founders pocket over $150M each in sale to Xero

In one of the largest Israeli tech exits in recent years, New Zealand-based software company Xero has agreed to acquire payments startup Melio in a deal worth up to $3 billion, including $2.5 billion in cash and an additional $500 million in performance-based earnouts. While the acquisition grants Xero a formidable foothold in the U.S. small business payments market, it also marks a windfall for Melio’s earliest investors and founding team, despite the company's turbulent valuation history.

Perhaps the most notable outcomes belong to the founders. Matan Bar, Ilan Atias and Ziv Paz (who left the company in 2021), each hold around 9% of the company, stand to earn over $150 million apiece. Bar, who previously helped develop Venmo at PayPal, is expected to lead the merged company’s U.S. operations under Xero.

Melio raised around $600 million over its lifetime and was once valued at $4 billion in 2021, at the height of tech exuberance. That valuation was nearly halved by its most recent funding round in 2024, as market corrections and rising interest rates deflated private tech prices across the board.

Nevertheless, early investors including Bessemer Venture Partners and Aleph will emerge with significant gains. Bessemer, the largest shareholder with an 18% stake, and Aleph, with 12%, are expected to generate returns of dozens of times their original investment.

Founded in 2018 by Bar, Atias and Paz, Melio helps U.S. small businesses manage accounts payable and receivable digitally. The startup quietly built infrastructure that powers payment systems for industry giants including Fiserv, Capital One, and Shopify.