From PayPal roots to global exit: Inside Melio’s $3B sale to Xero

Here’s a summarized list of key elements from the provided text regarding Melio’s acquisition:

Company Overview

  • Startup: Melio
  • Acquirer: Xero

Acquisition Details

  • Deal Value: Up to $3 billion
  • Date of Acquisition: Not specified, context implies recent but exact date is unknown.
  • Shareholder Payments:
    • Upfront: $2.5 billion (mostly cash)
    • Contingent payments: $500 million over three years

Founders

  • Matan Bar
  • Ziv Paz (left in 2021)
  • Ilan Atias
  • Expected Earnings: $150–200 million each

Funding Rounds

  • Total Fundraised: $650 million over seven rounds
  • Last Major Funding Round: $250 million at a $4 billion valuation in 2021

Investors

  • Major Early Investors:
    • Bessemer Venture Partners: 18% stake (estimated returns: ~$500 million)
    • Aleph: 12% stake (estimated returns: ~$300 million)
  • Other Investors:
    • General Catalyst, Coatue, Thrive Capital (noted for minimal returns)
    • Angel investors (noted individuals included Micha Kaufman from Fiverr)

Financial History

  • Valuation Peak: $4 billion in 2021
  • Growth: Grew from processing $20 million monthly to $1 billion monthly during the pandemic
  • Post-COVID Revenue Run Rate: ~$150 million in 2025

Xero’s Strategic Move

  • Market Cap: ~$20 billion
  • 2024 Revenue: $1.23 billion
  • Goals: Integrate advanced payments capabilities to strengthen presence in the U.S. market

This summary encapsulates the essential financial and strategic details surrounding Melio and its acquisition by Xero.

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2025-06-26 10:18:02