Zeller secures $6.3m seed funding to enter the business banking market
Melbourne-based fintech startup Zeller has managed to secure $6.3 million in a seed funding round. The funding round was led by Square Peg Capital, an Australian venture capital firm. Paul Bassat, the VC firm’s co-founder and partner will be joining as a member of the board of the startup. Apex Capital also contributed to the round of funding.
Australian fintech Zeller has been established by former executives of a payments fintech company Square, Ben Pfisterer and Dominic Yap. With the capital raised, the company aims to redefine banking and financial services for small and medium enterprises. The fintech startup will develop a range of products extending from payments to financing and release them in the market in 2021.
What Zeller has planned to do with the funding
Zeller co-founder Pfisterer says the company has set out to create more contemporary banking services for the under-served small businesses. He says though they’re seeing a drastic change in consumer and retail banking, nothing major has changed when it comes to business banking. As the interaction between a seller and buyer is evolving rapidly, Pfisterer believes the experience should be much more than just the monetary exchange. He wants to position Zeller as a technology that is easy to set up and helps businesses seamlessly move towards digital banking and cashless payments.
The founders believe once a business has been established and developed its product or service, the business owners need 3 basic things. The business needs to receive payments, a place to put this money and deploy the money they’ve made. The fintech platform by Zeller will combine these capabilities into one single efficient solution. The banking processes that usually take a week or more to set up will be up and running in a matter of a few minutes with Zeller’s solution.
What Square Peg says about Zeller
The first meeting for Zeller’s funding happened in January this year and the deal was signed by March-end when COVID-19 was taking over the world. According to Square co-founder Bassat, it really didn’t matter as Zeller was building a business for the long term. Bassat says what the founders of Zeller have recognized is a big market opportunity where there definitely is room for a new player.
The fintech company Zeller doesn’t plan to launch its new product until the first quarter of 2021. Bassat says the economic environment will be very much different by the time Zeller develops and launches its first product, businesses would be more eager to embrace new technology.
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