History of Xero in Timeline

Xero is a global, cloud-based accounting software platform designed primarily for small and medium-sized businesses. Founded in 2006, it enables users to manage essential financial functions such as invoicing, bank reconciliation, payroll, and expense tracking from any device with internet access. A key feature of Xero is its robust ecosystem of over 1,000 third-party app integrations, which allows businesses to customize their financial workflows. By leveraging cloud technology, Xero provides real-time visibility into cash flow and automates routine bookkeeping tasks, helping business owners and accountants collaborate seamlessly. With a significant market presence across New Zealand, Australia, the UK, and North America, Xero is a leading tool in the fintech sector for streamlining business financial management.

July 6, 2006: Founding of Xero

On July 6, 2006, Rod Drury and Hamish Edwards founded the company originally known as Accounting 2.0 in Wellington, which serves as the current headquarters for Xero Limited.

June 2007: Xero Initial Public Offering on NZX

On 5 June 2007, Xero officially went public on the New Zealand Exchange through an IPO that raised NZ$15 million and saw the stock price increase by 15% during its first day of trading.

2009: Xero Secures NZ$23 Million Funding

In 2009, Xero received a significant financial boost of NZ$23 million in a funding round led by Craig Winkler, the founder of MYOB.

2010: Additional Funding from Valar Ventures

During 2010, the company successfully raised an extra NZ$4 million from Valar Ventures, an investment firm founded by Peter Thiel.

July 2011: Acquisition of Paycycle

In July 2011, Xero expanded its service offerings by acquiring the Australian online payroll provider Paycycle in a deal worth NZ$1.9 million involving both cash and shares.

2011: Launch of Xero Touch for iOS

In 2011, Xero expanded its mobile presence by releasing the Xero Touch mobile application specifically for iOS devices.

February 2012: Valar Ventures Increases Investment

In February 2012, Peter Thiel's Valar Ventures contributed an additional US$16.6 million to support Xero's growth.

July 2012: Acquisition of Spotlight Workpapers

During July 2012, Xero continued its growth strategy by purchasing Spotlight Workpapers for a combined total of $800,000 in cash and shares.

November 2012: Xero Listing on the Australian Securities Exchange

On 8 November 2012, Xero expanded its market presence by officially going public on the Australian Securities Exchange (ASX).

November 2012: Funding Round Led by Peter Thiel and Matrix Capital

Xero raised $49 million in a funding round completed in November 2012, with the primary investments coming from Peter Thiel and Matrix Capital.

2012: Launch of Xero Touch for Android

Building on the success of their mobile strategy, Xero released the Xero Touch mobile application for Android devices in 2012.

May 2013: NZE Capital Raise and Valuation Milestone

By May 2013, Xero successfully raised over $100 million on the New Zealand Exchange (NZE), achieving a company valuation of approximately $1.4 billion.

October 2013: Major Capital Injection from Thiel and Matrix

In October 2013, Xero received an additional NZ$180 million from Peter Thiel and Matrix Capital, which brought the company's total funding to over $230 million.

February 2015: Funding from Accel and Matrix Capital

On 25 February 2015, Xero raised $100 million from Accel and an additional $10.8 million from Matrix Capital.

2017: Xero Reaches One Million Global Customers

In 2017, the cloud-based accounting software company Xero achieved a significant business milestone by surpassing one million customers globally.

February 2018: Xero Transitions to Sole ASX Listing

In February 2018, Xero completed its transition to a sole listing on the Australian Securities Exchange (ASX), having officially delisted from the New Zealand Stock Exchange (NZX) on 2 February 2018.

April 2018: Steve Vamos Appointed as CEO

During April 2018, Steve Vamos took over as the CEO of Xero, transitioning founder Rod Drury to a non-executive director role on the company's board.

July 2018: Partnership with Gusto

In July 2018, Xero established a strategic partnership with the US-based payroll platform Gusto to integrate their services.

August 2018: Acquisition of Hubdoc

Xero acquired the data capture application Hubdoc in August 2018 to enhance its automated accounting and data management capabilities.

October 2018: Convertible Notes Settlement

On 5 October 2018, Xero announced a settlement of US$300 million in convertible notes, marking a significant funding achievement for a company not listed in the United States.

November 2018: Acquisition of Instafile

In November 2018, Xero purchased the cloud-based accounts preparation and tax filing application Instafile for a total of £5.25 million.

September 2019: Xero Reaches NZ$10 Billion Market Capitalisation

In September 2019, Xero hit a significant financial milestone as its market capitalisation on the ASX surpassed NZ$10 billion, securing its position as the third most valuable publicly listed company from New Zealand.

2019: Expansion of Global Compliance Services

During the 2019 financial year, Xero expanded its service offerings to align with new government compliance requirements, introducing Making Tax Digital in the United Kingdom, Single Touch Payroll in Australia, and Payday Filing in New Zealand.

2019: Surpassing Two Million Global Subscribers

In 2019, Xero reached a significant corporate milestone by announcing that its global subscriber base had surpassed two million users.

August 2020: Acquisition of Waddle

In August 2020, Xero finalized the acquisition of the Australian invoice financing startup Waddle for a total of A$80 million, consisting of both cash and earnout payments to help small businesses leverage their accounts receivables.

September 2021: Reaching Three Million Subscribers

As of September 2021, the company experienced continued growth, successfully reaching a total of three million global subscribers.

November 2021: Acquisition of Locate Inventory

In November 2021, Xero expanded its business capabilities by acquiring the inventory management provider Locate Inventory for a total of US$19 million.

December 2021: Acquisition of TaxCycle

During December 2021, Xero announced a strategic move to acquire the Canadian tax software company TaxCycle for CA$75 million.

November 2022: Announcement of Leadership Succession

In November 2022, CEO Steve Vamos announced his decision to step down from his position, naming Sukhinder Singh Cassidy, formerly of Google and StubHub, as his successor.

November 2022: Establishment of India Technology Base

In November 2022, Xero announced a strategic partnership with Infosys to launch a new technology base in India, specifically focused on expanding the company's engineering and developer talent pool.

February 2023: Sukhinder Singh Cassidy Becomes CEO

As planned in the November 2022 announcement, Sukhinder Singh Cassidy officially replaced Steve Vamos as the CEO of Xero in February 2023.

March 2023: Waddle App Closure and Layoffs

During March 2023, Xero implemented a reduction in its workforce and officially announced the decision to shut down the Waddle app.

March 2023: Xero announces significant workforce reduction

In March 2023, Xero CEO Sukhinder Singh Cassidy announced a restructuring plan involving the layoff of 700 to 800 employees, which accounted for roughly 15% of the company's total global workforce at that time.

November 2023: Completion of Xero staff restructuring

By November 2023, Xero officially completed its planned job cuts, successfully reducing its global headcount to 4,242 staff members.

April 2024: Xero announces strategic partnership and investment in Deputy

In April 2024, Xero entered into a strategic partnership with the workforce management platform Deputy. As part of this deal, Xero invested US$25 million for a minority stake in the company and committed to integrating Deputy's shift management features into Xero's payroll platform for users in Australia.

May 2024: Achieved Rule of 40 outcome

In May 2024, Xero successfully reached a Rule of 40 performance metric of 41.0%, reflecting the company's balance between growth and profitability.

September 2024: Acquisition of Syft Analytics

In September 2024, Xero expanded its financial reporting and analytics capabilities by acquiring the cloud-based platform Syft Analytics in a deal valued at up to US$70 million.

November 2024: Improved Rule of 40 outcome

During November 2024, Xero continued its strong financial performance by reporting a Rule of 40 outcome of 43.9%.

June 2025: Acquisition of Melio

In June 2025, Xero announced a definitive agreement to acquire the US-based company Melio for an initial value of US$2.5 billion in cash and stock, with an additional earn-out potential of $500 million over three years. This strategic move is intended to bolster Xero's presence in the United States, a market that currently accounts for approximately 7% of its total sales, with Melio CEO Matan Bar set to head the expanded US operations.

June 2025: Xero announces acquisition of Melio

In June 2025, the cloud accounting software company Xero reached a definitive agreement to purchase the New York-based payments firm Melio for a total consideration of $2.5 billion.

2026: Xero and Anthropic AI Partnership

In 2026, Xero entered into a strategic partnership with Anthropic to integrate advanced artificial intelligence capabilities into their suite of accounting software tools.