Xero is a New Zealand-based software company that develops cloud-based accounting software for small and medium-sized businesses.
Xero offers a cloud-based accounting software platform for small and medium-sized businesses. Its 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.
Xero was founded in a Wellington studio apartment in 2006 by Rod Drury and Hamish Edwards. Xero Limited was officially formed in 2006 in Wellington, New Zealand where its global headquarters are still located. The company entered the Australian market and the United Kingdom in 2008, and United States in 2011. Xero has offices in New Zealand, Australia, the United Kingdom, the United States and Singapore. It is listed on both the New Zealand Exchange and Australian Securities Exchange.
Xero has acquired several companies since its launch. In July 2011, the company acquired Australian online payroll provider Paycycle for a mixture of cash and shares totaling $1.9 million (NZD). The acquisition allowed Xero to integrate payroll into their Australian product offering. It acquired Spotlight Workpapers in July 2012 for a mixture of cash and shares totaling $800,000. The same year it acquired online job, time and invoice management solution WorkflowMax for cash and shares totaling $6 million (NZD).
In 2019, Xero announced it had hit 1.8 million subscribers, employed 2,500+ people around the world and achieved positive free cash flow for the first time.
Xero's lead investors includes Accel Partners, Matrix Capital Management, MYOB, TCV, Valar Ventures and others. The company has raised a total of $681.4M in funding. Xero went public on Jun 15, 2007.