Melio + Xero: The Future of SMB Finance

Xero today announced that it has entered a binding agreement to acquire Melio for $2.5B.

Congratulations to Matan Bar, Ilan Atias and the entire Melio team for this extraordinary accomplishment. It took a lot of ambition, hard work and grit to make this outcome possible.

Our story with Melio started on 8 March, 2020, when we signed the term sheet with Matan in London before the world shut down during the pandemic. We had to book Matan a new flight back to Tel Aviv so he could avoid quarantine. One week later the world locked down and the markets crashed. But not our conviction in Matan, Ilan and their team. Melio’s mission was to keep small business in business by giving them better control of their cash via faster and cheaper payments.

The digitisation wave that was unleashed when lockdowns ended gave the company a big boost and growth really kicked in. By October 2020, the company crossed $4B in TPV and the rest is history. Building on this momentum, the company started to develop its product portfolio which now includes accounts payable, accounts receivable, an offering for accountants, and a full modular AP and AR platform for its B2B partners. These include flagship brands such as CapitalOne, Clover, Fiserv, Gusto, and Shopify. And of course, AI came in and supercharged the capabilities of the platform, both for internal processes such as fraud, and to offer new services.

Uniting with Xero will supercharge Melio’s mission, providing access to a platform serving more than 4.4M subscribers globally. With both accounting and payment services integrated in a single platform, Melio and Xero will build the future of SMB finance.

Thank you, Melio team, for choosing us to be part of your journey. We can’t wait to see what the combination of these two great companies will deliver in the future.