Xero becomes $3 billion company

Fresh from raising NZ$180 million of new capital from a range of US and New Zealand investors this week, cloud accounting firm Xero has become a $3 billion company.

With shares in the Wellington-based software provider jumping $12 to $25.50 in trading yesterday, the company's market value now stands at close to $.295m.

Following substantial investments from existing shareholders Matrix Capital Management and the Peter Thiel backed Valar Ventures, the company has enjoyed a huge surge in company stock.

“Xero has had seven years to build the best global accounting platform,” said Rod Drury, CEO, Xero on Monday. “That investment puts us in a strong position as the cloud market accelerates.

“The calibre of our investors and our strong cash position sends a clear signal of our aspirations to serve millions of small businesses around the world and attract the world’s best talent.”

As a result of the investments, the company expects operating revenue to exceed $30m for the six months to September 30, after building a powerful software platform supporting over 211,000 customers globally.