Xero (company)
Xero is a New Zealand–domiciled public technology company, listed on the Australian Securities Exchange. Xero is a cloud-based accounting software platform for small- and medium-sized businesses. The company has three offices in New Zealand (Wellington, Auckland and Napier), six offices in Australia (Melbourne, Sydney, Canberra, Adelaide, Brisbane and Perth), three offices in the United Kingdom (London, Manchester and Milton Keynes), three offices in the United States (Denver, San Francisco and New York), as well as offices in Canada, Singapore, Hong Kong and South Africa. Xero's products are based on the software as a service  (SaaS) model and sold by subscription, based on the type and number of company entities managed by the subscriber. Its products are used in over 180 countries. History. Xero was founded in Wellington during 2006 by Rod Drury and Hamish Edwards. Xero Limited's headquarters are still located in Wellington. The company was originally called Accounting 2.0. In 2017, Xero claimed to have more than one million customers globally, and the following year, in December 2018, Xero claimed to have more than one million subscribers in its home markets of Australia and New Zealand. In April 2018, Steve Vamos was  appointed as CEO, replacing Rod Drury. Drury remained on the board as a non-executive director. In 2019, the company announced it had over two million global subscribers. Funding. Xero went public on the New Zealand Exchange on 5 June 2007, with a $15 million (NZD) IPO, gaining 15% on its first trading day. The company initially focused solely on the New Zealand market. It went public on the Australian Securities Exchange (ASX) on 8 November 2012. Xero transitioned to a sole listing on the ASX on 5 February 2018, delisting from the NZX on 2 February 2018. 31  January 2018 was the last day Xero shares were traded on the NZX. In September 2019, the market capitalisation of Xero on the ASX exceeded $10 billion (NZD), and it was ranked as the third most-valuable publicly listed New Zealand company. Xero has also received funding from various investors. In 2009, it received $23 million (NZD) of funding led by MYOB founder, Craig Winkler. It raised an additional $4 million (NZD) in 2010 from Peter Thiel's Valar Ventures who also invested an additional $16.6 million (USD) in February 2012. It raised $49 million  in a funding round in November 2012 with the largest amounts coming from Peter Thiel and Matrix Capital. It has been reported that the company had raised more than $100 million at a valuation of approximately $1.4 billion on the NZE as of May 2013. This valuation was before receiving an additional $180 million (NZD) from Thiel and Matrix in October 2013, bringing total funding to more than $230 million. Xero raised an additional $100 million from Accel and $10.8 million from Matrix Capital on 25 February 2015. On 5 October 2018, Xero announced  a settlement of $300 million (USD) in convertible notes, more than previously raised by any New Zealand or Australian company which is not listed in the United States. As a result, the company was awarded best hybrid deal of 2018 by Finance Asia. Acquisitions and partnerships. Xero has acquired several companies since its launch. In July 2011, the company acquired the Australian online payroll provider Pay cycle for a mixture of cash and shares totaling $1.9 million (NZD) to integrate the company's products into its services. It acquired Spotlight Workpapers in July 2012 for a mixture of  cash and shares totaling $800,000. In July 2018, Xero announced a strategic alliance with US payroll platform Gusto. In August 2018, Xero acquired Hubdoc, a data capture solution. Xero paid the acquisition price for Hubdoc in two stages, initially US$60 million consisting of 35% cash and 65% in Xero equity. The second tranche of US$10 million in equity was promised to the Hubdoc's shareholders in 18 months following the acquisition, subject to operational targets and conditions. In November 2018, Xero acquired cloud-based accounts preparation and tax filing solution Instafile for £5.25 million (GBP), which  will be paid over three years. In August 2020, Xero acquired Waddle, an Australian-based invoice financing startup for $80 million (AUD). Payment includes $31 million in cash and $49 million in earnout payments. Waddle allows small businesses to access quick loans secured by their accounts receivables. In March 2021 Xero acquired Danish workforce management platform, Planday. They followed this up with the acquisition of e-invoicing firm, Tickstar, in the same month. Product. The Xero accounting software uses a single unified ledger, which allows users to work in the same set of books regardless of location  or operating system. Its features include automatic bank feeds, invoicing, accounts payable, expense claims, fixed asset depreciation, purchase orders, bank reconciliations, and standard business and management reporting. In 2011, the Xero Touch mobile apps for iOS and Android devices were released. In the 2019 financial year, Xero offered services relating to Making Tax Digital in the United Kingdom, Single Touch Payroll in Australia and Payday Filing in New Zealand.