Xero
Accounting software company
From Wikipedia, the free encyclopedia
Xero Limited is a New Zealand technology company that provides cloud-based accounting software for small businesses. The company has offices in New Zealand, Australia, the United Kingdom, the United States, Canada, South Africa and Singapore.[7][8] Xero's products are based on the software-as-a-service model and sold by subscription, based on the type and number of entities managed by the subscriber.[9] The products are used in over 180 countries.[10][11]
| |
| Type | Public |
|---|---|
| |
| ISIN | NZXROE0001S2 |
| Industry | Software as a service |
| Founded | July 6, 2006 in Wellington, New Zealand |
| Founders |
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| Headquarters | |
Key people |
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| Products | Accounting software |
| Revenue |  NZ$2.103 billion
[1] (2025) |
| NZ$362.6 million[1] (2025) | |
| NZ$227.8 million[1] (2025) | |
| Total assets | NZ$4.463 billion[1] (2025) |
| Total equity | NZ$2.196 billion[1] (2025) |
Number of employees | 4,610[1] (2025) |
| Website | xero |
| Footnotes [1][2][3][4][5][6] | |
History
On July 6, 2006,[12] Xero was founded by Rod Drury and Hamish Edwards in Wellington,[13][14][15] where Xero Limited's headquarters are still located.[16] The company was originally called Accounting 2.0.[15]
By 2017, Xero had more than one million customers globally,[17] and the following year, it had more than one million subscribers in Australia and New Zealand.[18] In April 2018, Steve Vamos was appointed as CEO, replacing Rod Drury who remained on the board as a non-executive director until 2023.[19] Vamos announced in November 2022 that he would step down in February 2023 and be replaced by Sukhinder Singh Cassidy, a former executive of Google and StubHub.[20][21]
In 2019, the company announced it had over two million global subscribers,[22] and three million subscribers in September 2021.[23]
In March 2023, Sukhinder Singh Cassidy, the CEO of Xero, announced the removal of 700-800 roles across Xero, representing approximately 15% of the employee base.[24] At this time, the company reportedly had more than 3.5 million subscribers and about 4,500 staff across offices in New Zealand, Australia, North America, the UK and southeast Asia.[25] The company announced it had finished its job cuts by November 2023, reducing headcount to 4,242 staff.[26]
In May 2024, the company announced it had achieved a Rule of 40 outcome of 41.0%, followed by a Rule of 40 outcome of 43.9% in November 2024.[27]
In June 2025, Xero announced an agreement to acquire Melio, a New York-based payments provider, for $2.5 billion.[28]
Products
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.[29] It provides automatic bank feeds, invoicing, accounts payable, expense claims, fixed asset depreciation, purchase orders, bank reconciliations, and standard business and management reporting.[30]
In 2011 and 2012, the Xero Touch mobile apps for iOS and Android devices were released.[31]
In the 2019 financial year, Xero offered services relating to Making Tax Digital in the United Kingdom,[32] Single Touch Payroll in Australia,[33] and Payday Filing in New Zealand.[34]
In 2026 Xero announced a partnership with Anthropic to add AI to their accounting software.[35]
Funding
Xero went public on the New Zealand Exchange on 5 June 2007, with a NZ$15 million IPO, gaining 15% on its first trading day.[36] It went public on the Australian Securities Exchange (ASX) on 8 November 2012.[3][37]
Xero transitioned to a sole listing on the ASX on 5 February 2018, delisting from the NZX on 2 February 2018.[38] In September 2019, the market capitalisation of Xero on the ASX exceeded NZ$10 billion, and it was ranked as the third most valuable publicly listed New Zealand company.[39]
Xero has also received funding from various investors. In 2009, it received NZ$23 million of funding led by MYOB founder, Craig Winkler.[40] It raised an additional NZ$4 million in 2010 from Peter Thiel's Valar Ventures who also invested an additional US$16.6 million in February 2012.[41] It raised $49 million in a funding round in November 2012 with the largest amounts coming from Peter Thiel and Matrix Capital.[42] The company raised more than $100 million at a valuation of approximately $1.4 billion on the NZE by May 2013.[43][44] This valuation was before receiving an additional NZ$180 million from Thiel and Matrix in October 2013, bringing total funding to more than $230 million.[45] Xero raised an additional $100 million from Accel and $10.8 million from Matrix Capital on 25 February 2015.[46] On 5 October 2018, Xero announced a settlement of US$300 million in convertible notes, more than previously raised by a New Zealand or Australian company not listed in the United States.[47]
Acquisitions and partnerships
In July 2011, Xero acquired the Australian online payroll provider Paycycle for a mixture of cash and shares totaling NZ$1.9 million, to integrate the company's products into its services.[48] It acquired Spotlight Workpapers in July 2012 for a mixture of cash and shares totaling $800,000.[49]
In July 2018, Xero formed a partnership with US payroll platform Gusto.[50] In August 2018, it acquired Hubdoc, a data capture application.[51] In November 2018, it acquired cloud-based accounts preparation and tax filing application Instafile for £5.25 million.[52]
In August 2020, Xero acquired Waddle, an Australian-based invoice financing startup, for A$80 million. The payment included $31 million in cash and $49 million in earnout payments. Waddle allows small businesses to access loans secured by their accounts receivables.[53][54] In March 2023, Xero announced it was cutting jobs and closing the Waddle app.[55]
In November 2021, it acquired inventory management provider Locate Inventory for US$19 million,[56] and in December 2021, Xero announced it was acquiring Canadian tax software provider, TaxCycle, for CA$75 million.[57]
In November 2022, Xero announced the establishment of a technology base in India in partnership with technology outsourcing company Infosys.[58] The India technology base includes engineering and developer roles.[58]
In April 2024, Xero announced a strategic partnership with workforce management platform Deputy.[59] As part of the agreement, Xero invested US$25 million to take a minority stake in Deputy and announced plans to embed Deputy’s shift work management capabilities into Xero’s payroll platform for Australian customers.[60]
In September 2024, Xero announced the acquisition of cloud-based reporting, insights and analytics platform Syft Analytics for up to US$70 million.[61]
In June 2025, Xero agreed to acquire US company Melio for US$2.5 billion in cash and stock, and up to $500 million in additional payments over three years. Melio co-founder and CEO Matan Bar will lead the US operations of the combined business.[62][63] Xero wants to grow in the U.S. which the company says is about 7% of its sales.[64]
