Xero Limited (XRO), the New Zealand based cloud accounting software provider, has made two big announcements in the past week. Today (October 14) the compnay (Xero Limited (XRO) announced it has raised NZ$180 million (roughtly $150 million US) of new capital from a range of US and New Zealand investors, including existing shareholders Matrix Capital Management and Valar Ventures. This new round of funding will give Xero NZ$230 million ($192 Million US) cash on hand.
What will Xero do will all of that cash? Xero CEO Rod Drury says “Xero has had seven years to build the best global accounting platform. That investment puts us in a strong position as the cloud market accelerates. The caliber of our investors and our strong cash position sends a clear signal of our aspirations to serve millions of small businesses around the world and attract the world’s best talent.”
In addition to the funding announcement, on October 8 the company announced an 89% growth in customers for the year ending September 30, 2013. According to the release customer numbers more than doubled in its United States/Rest of World region (excluding United Kingdom, Australia and New Zealand), with 141% growth. Additionally, the company announced that global revenue has increased 84% for the six-month period ending September 30, compared to the same period last year.
Xero is expanding is physical footprint in the US with a move to a new 25,000 square foot office in San Francisco (it's US headquarters). The company already has an office in Los Angeles, a presence in Atlanta and plans to open offices in Denver and New York this year.
In addition to the company and customer growth, there has been an accelerated expansion in the number of software applications that integrate with Xero. This includes key integrations announced this year with high profile partners such as Expensify, Harvest and SurePayroll. There are currently over 300 applications that integrate with Xero’s cloud accounting platform, up from 160 a year ago.
The full press release can be found here.