Israel-based B2B payments outfit Melio has raised $250m in a Series D funding round, tripling its valuation to $4bn.

The round was co-led by new investor Thrive Capital of New York and current backer General Catalyst.

It also involved the participation of Tiger Global Management, Bessemer, Coatue, Corner Ventures, Latitude, and Accel.

Melio plans to use the fresh infusion to drive its expansion through partnerships with financial institutions, software providers, and marketplaces with focus on B2B payments.

The firm helps small businesses transfer and receive payments through an integrated solution.

This latest funding comes as the firm grew its monthly processing volumes by 5,000% over the last 18 months.

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Melio CEO and co-founder Matan Bar said: “2021 has been a year of rapid growth for Melio. We found ourselves in a fortunate position to support small businesses more than ever before, helping them digitise their vendor payment operations, saving them valuable time, and maximising their cash flow.”

As part of the funding round, General Catalyst chairman and managing director Ken Chenault will join as an observer on Melio’s board.

Chenault was previously the chairman and CEO of American Express.

He said: “Since our initial investment in Melio, I’ve worked closely with Matan. I’ve been very impressed with his leadership and with what he and the team have accomplished. Most importantly, I am very excited about the opportunity that lies ahead of them as one of the fastest growing companies in the small business payments space.”

Recent developments at Melio

This new fundraising comes after Melio’s $110m financing round in January this year.

The firm is looking to grow its operations through tie-ups with financial service and software as a service (SaaS) companies.

In June this year, it partnered with US-based credit card issuer Capital One to boost access to accounts payable and receivable cash flow management tools for small business customers.

Last year, Melio teamed up with Intuit’s QuickBooks, the accounting software for small businesses, to provide an integrated accounts payable solution to QuickBooks users.