Kiwi tech success story Xero has notched up another milestone, entering the NZX 50, the 50 ‘largest and most liquid’ companies listed on the NZX,.
Founded in July 2006 by technology entrepreneur Rod Drury and small business consultant Hamish Edwards, Xero first listed on the NZX in June 2007, just over five years ago.
In a blog post recognising this latest achievement, Drury says the company has so far raised over $85 million through its IPO and subsequent strategic placements and Shareholder Purchase Plans (SPPs).
"The only way we could do Xero from New Zealand was to sell a big story and raise enough capital to build it,” Drury says.
"We’re most proud of the support our shareholders have given us by taking up the SPPs, and it feels good to allow all shareholders to participate in our placements on the same basis as the strategic investors we’ve brought onto our register.”
Drury adds that despite pressure to start turning a profit, he remains confident in the growth in the small business SaaS sector, so the company will ‘keep doing our thing and see how far we can go’.
"Because the space we are in is white-hot and we have been able to raise significant capital we have to spend that investment to grow the biggest long-term business possible.
"Hopefully we’re making it easier for the next growth companies by showing that this strategy can work.”