Home Cloud Accounting Xero secures NZ$147 million in investments to drive global growth
Xero CEO Rod Drury Xero CEO Rod Drury Featured

New Zealand-based, listed global accounting software provider Xero has secured NZ$147 million in funding which it will use to drive growth internationally, particularly in the US and UK markets.

Xero CEO Rod Drury announced a strategic investment of NZ132.9 by Silicon Valley venture capital firm Accel Partners at NZ$20 per share, and a further NZ$14.3 million in additional capital investment from existing shareholder Matrix Capital Management.

Accel, which focuses on early stage and growth stage investments, will invest through a number of funds under its management.

Matrix is Xero’s largest institutional investor.

Drury said Xero will have a cash balance of approximately NZ$285 million on completion of the transactions which will be used to fuel continued innovation and growth globally and specifically to drive its growth in the United States and United Kingdom.

Xero (ASX:XRO) also announced continuing expansion of its US and global leadership teams with the appointment of Russell Fujioka, as US President, effective immediately. Fujioka is based at Xero’s US headquarters in San Francisco. Drury said Fujioka brings to Xero significant experience in sales, digital marketing and operational management of high growth technology businesses.

The company also adds Graham Smith - former Saleforce chief financial officer and Splunk board member – to the Xero board as an additional independent, non-executive director. Smith has significant experience scaling SaaS businesses.

The investments by both Accel and Matrix are expected to close in mid-March. The Accel investment is subject to conditions in the agreements being met, but the Matrix deal is not subject to any conditions other than the closing of the Accel Funds investment.

“We welcome the Accel Funds as strategic investors in Xero, and are delighted with Matrix’s continued support,” Drury said.

“Our ability to attract capital and leadership of this calibre is testament to our success and our potential to become the small business SaaS platform of choice for entrepreneurs around the globe.”


“Accel always looks for enduring technologies with global reach and we see the need and opportunity for millions of small businesses to grow on Xero’s platform,” said Andrew Braccia, partner at Accel.  

“We’ve worked with several other leading companies in the region to broaden their global reach and we hope this experience will be valuable as Xero’s strong leadership team looks to expand in the United States.”

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

 

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