Melio Payments is set to triple its valuation in a new funding round, The Information reported.
The round is expected to value the company at $4 billion, the report stated, citing three unnamed sources.
Melio works on developing software for small- to medium-sized businesses (SMBs) to pay suppliers with bank transfers or credit cards, according to the report. The size of the round was unknown, but it comes only eight months after the company’s last funding round.
The new round is still open, and the valuation is subject to change, the report stated.
The company’s fundraising speed has come as venture capital firms keep up a healthy appetite for FinTech deals, with U.S. startups so far this year racking up $29 billion, according to the report, which cited PitchBook data. That is almost double the amount from last year’s number of $15 billion.
The financing is being co-led by Thrive Capital, which is a New York-based investment firm founded by Josh Kushner, and existing backer General Catalyst, the report stated.
In June, Melio announced it had teamed up with Capital One to bolster the levels of access for accounts payable (AP) and accounts receivable (AR) services. Capital One also joined Melio’s Series C round with a strategic investment.
“We’re thrilled to be building the foundation of a strategic partnership with Capital One, one of the leading banks in the U.S. focused on small businesses, by equipping a segment of Capital One Business card holders with what they need most right now: increased access to cash flow management tools and payments that are accepted everywhere,” said Melio Co-Founder and CEO Matan Bar at the time.
Bar has also said the key to aiding SMBs is to add more flexibility for payments to help with the shift away from the manual paper-based processes.