Menu
Xero raises $180m for US development, global growth

Xero raises $180m for US development, global growth

Transactions leave company with $230m cash on hand

Online accounting software developer, Xero, has raised $180 million in new capital to continue building its United States-based team while also supporting global growth.

While New Zealand investors account for $33m of the total, the remaining $147m comes from US investors. This includes existing shareholders Matrix Capital Management ($US15m) and Valar Ventures ($US5m), among other parties which Xero did not name, although claims are "some of the most enduring and well-capitalised asset management firms in the world."

The transactions are priced at $18.15 per share for 9.92 million shares, representing eight per cent of the shares on issue after the raise, and leaving Xero with $230m cash on hand.

“Xero is emerging as the definitive software platform for small business worldwide,” Matrix Capital Management managing member, David Goel, said.

“Having empowered hundreds of thousands of small and medium-sized businesses in NZ, Australia and the United Kingdom, Xero is poised to do the same for its 29 million potential customers in the US. We are adding our investment to help facilitate and accelerate this goal.

Xero’s software platform presently supports more than 211,000 customers globally, with the assistance of accountant and bookkeeper partners. The vendor has spent the past two months hosting partner conferences in Australia, the US, and the UK, and claims to be seeing acceleration in the acceptance and adoption of its products.

Earlier this month, the company reported annualised monthly committed revenue of $70.6m as at September 30, up from $38.7m a year earlier. It expects its operating revenue to exceed $30.3m for the six months to September 30, up 84 per cent over the same period last year.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags investorsshareholderssoftwarevendoraccountingxerocapital

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments