Malio, a fintech company with a presence in New York and Israel, gives small businesses a way to digitally manage their payments and charges to the business.
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“We are a tool for paying bills and receiving bills to allow them to pay to any vendors and also to allow them to be paid by business customers,” Malio founder and CEO Matan Bar told Crunchbase News.
After raising $ 80 million in Round C Series C back in September, led by Coatue and General Catalyst, Coatue is leading a new $ 110 million round in what Fracture calls “Series C2.”
The latest round of funding takes the total capital raised since the company’s inception in 2018 to $ 256 million, giving the company a value of $ 1.3 billion, Bar said. Of that amount, $ 240 million was raised in 2020 alone. In addition to Coatue and General Catalyst, investors from previous rounds include Accel, Aleph, Bessemer Venture Partners, Corner Ventures, Latitude, Salesforce 1 and American Express Ventures.
The value of B2B’s wholesale payments industry, which includes businesses paying vendors for products and services, is estimated at $ 25 trillion in the U.S., which accounts for 42 percent of B2B transactions.
The transition to digital in many industries has been accelerated by the global epidemic, but Barr said the B2B payment space is slow to follow, and Malio is about to change that, he added. Its users reduced paper check payments by 50% in 2020, compared to a decline of 4% to 8% between 2003 and 2018, according to Federal Reserve data.
“More than $ 14 trillion in payments are made through paper checks in the U.S.,” Barr said. With checks? “
By 2020, Malio’s monthly active users grew by more than 2,000 percent, which a fraction attributes to being in the right place at the right time when small businesses went through the plague and economy.
The new funding will be used to support growth and continue to build a platform that will allow partners to offer B2B payments to their customers. Bar said that QuickBooks is an example: users will be able to add not only their accounts, but also pay their accounts from the QuickBooks platform, which is powered by the Melio platform.
Michael Gilroy, Coatue’s general partner, said in a written statement that “going digital” is one way to keep small businesses “ahead of the curve” and in competition with bigger rivals.
“Malio has recognized both the opportunity and the duty to help small businesses manage their finances remotely and improve cash flow, during normal periods as well as during this crisis, as supply chain physical payments are disrupted and flooded,” he added.
Illustration: Lee-Ann Diaz
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