Zeller bags $50 million for its banking solution aspirations

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funding raised | iTMunch

Zeller, a small business-centred financial technology firm, has raised another $50 million in funding. The latest capital round has brought Zeller’s total funding to over $81 million in just 12 months. While the news has been made public now, investors inked the deal just a couple of days before Zeller launched in May.

The funding round for Zeller was led by Spark Capital, the VC firm whose portfolio includes tech successes like Twitter, Coinbase and Slack. Zeller’s valuation is now $400 million AUD (about $301 million USD).

The latest round of funding also included previous investors from Square Peg, Addition and Apex Capital Partners.

The valuation of this Melbourne-based fintech which was founded by former execs at Square is now at AU$400 million (nearly US$301 million).

Where will Zeller use the money raised

The freshly raised capital will be used by Zeller to grow its research and engineering hub. This will include filling about 18 new engineering roles that’ll support the company’s plan to become a fully regulated business bank. 

Zeller said that over 1,500 Australian enterprises and businesses have signed up in the month after its launch and weekly payment volume has grown 200%. Nearly 80% of businesses that began using Zeller switched from Australia’s 4 biggest banks, pointing towards their desire for lower fees as well as better customer support. 

In a press statement, James Kuklinski (Spark Capital investor) said “From our first meeting with Ben, we knew we wanted to be a part of Zeller. Australia’s business banking landscape is dominated by a small group of incumbents, and is ripe for disruption through simpler, more transparent pricing, best-in-class technology and better customer service.”

SEE ALSO: US Fintech Stripe acquires Y Combinator startup Bouncer

Is Zeller planning an IPO?

The past year and a half has seen a lot of fintech activity in Australia and many startups carved their way towards the ASX. Zeller co-founder Ben Pfisterer said that’s not where Zeller is headed. At least not anytime in the near future, he adds, and all of its investors are in it for the long-term. 

The company wants to be a multi-generational business and doesn’t just want to quickly scale towards an exit, Pfisterer says. The founders don’t see an ASX-listing as an end goal or even as a sign of success. 

Pfisterer simply wants to own enough capital to be able to expand and grow the business to where it needs to be to best help its customers. However, he said that if listing makes sense in the future, “so be it, but we’re well capitalised with great investors, so it’s not required at the moment.”

SEE ALSO: UK fintech Volt raises US$23.5 million in Series A funding round

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