New Zealand Stock Exchange-listed accounting software-maker Xero has landed $26.4m from US late-stage investor Technology Crossover Ventures (TCV).
The firm acquired a 1.3% stake in Xero from Matrix Partners, which reduced its share of the business from 9.8% to 8.5%.
The investment comes after Xero last month announced it has attracted more than 1 million subscribers, adding 300,000 in the last year alone.
Xero chief financial and operating officer Sankar Narayan commented: “Surpassing one million subscribers, Xero is transitioning to become a global platform primed to service millions of small businesses.
“It is routine that some early-stage investors will rebalance their portfolios and we’re thrilled to receive strong support from new investors who are ready to join Xero for its next phase of growth.”
TVC’s portfolio also counts accounting-software services Avalara, FinancialForce and Payoneer among its portfolio.
Xero previously highlighted the important role it believes machine learning and artificial intelligence will play in the future of the accounting tech space.
“Machine learning and automation will open up the next phase of innovation in accounting, driving a transition in the industry bigger than the move to the cloud did ten years ago,” said CEO Rod Drury.
“Rather than just keying in data, they’re interpreting the output – and with the power of machine learning, they’ll provide higher level advisory services that help clients feel in control of their finances which is a key human function that cannot be replaced.”
Xero went public in New Zealand in 2007 and aimed to list in the US in 2015 before delaying and then shelving plans.
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