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