
Accel, Matrix invest $111m in NZ accounting software firm
Accel Partners, and existing investor Matrix Capital, have together invested NZ$147.2 million ($111 million) in New Zealand-listed accounting software developer Xero.
Accel's investment makes up the bulk of the round, with the firm putting in NZ$132.9 million, Matrix meanwhile will contribute NZ$14.3 million.
Founded in 2006 by Rod Drury, Wellington-based Xero provides accounting software for entrepreneurs. The platform lets users create invoices, pay bills and wages, reconcile bank accounts and numerous other functions needed to run a small business.
The product runs as cloud-based service that can be accessed from anywhere across several devices. Since its inception the company has expanded rapidly with offices in Australia, the UK and the US. The software currently claims to have 400,000 users in more than 180 countries around the world.
According to a release, the investment will give Xero a cash balance of NZ$285 million, the start-up will use the proceeds to fuel further expansion overseas - particularly in the US and UK - and for research and development.
To coincide with the fundraise, Xero has appointed Russell Fujioka to lead its US business, and appointed former Salesforce CFO Graham Smith as a non-executive director.
"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, a 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," he added.
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