Zeller Raises $50M AUD in Funding

Zeller Secures $50 Million AUD in Funding

Zeller, a fintech company headquartered in Melbourne, has successfully raised $50 million AUD – equivalent to approximately $37.5 million USD. The funding round was spearheaded by Spark Capital, a prominent investment firm with a portfolio encompassing companies like Twitter, Slack, and Coinbase.

This investment elevates Zeller’s valuation to $400 million AUD, roughly $301 million USD.

Investment Details and Previous Funding

The current funding round saw participation from existing investors, including Square Peg, Apex Capital Partners, and Addition.

This brings the total capital raised by Zeller in under a year to $81 million AUD. Prior to this, the company secured funding through a pre-launch Series A led by Addition, and initial seed funding.

Founding and Initial Product Launch

Zeller was established last year by Ben Pfisterer, formerly the head of Asia Pacific and Australia at Square, and Dominic Yap, who previously served as the fintech’s strategy and growth lead.

The company’s initial product suite, launched on May 4th, caters to small businesses and includes EFTPOS terminals, business accounts, and associated cards.

Rapid Growth and Market Adoption

Since its launch, over 1,500 Australian businesses have registered with Zeller.

Weekly payment volume is experiencing substantial growth, increasing by 200%. A significant 80% of businesses adopting Zeller have transitioned from Australia’s four major banks.

These businesses are motivated by a desire for reduced fees and improved customer service.

Future Plans and Expansion

The newly acquired funding will be strategically allocated to expand Zeller’s research and engineering capabilities.

Specifically, the company intends to fill 18 new engineering positions to facilitate its progression towards becoming a fully regulated business bank.

Spark Capital’s Perspective

James Kuklinski, an investor at Spark Capital, stated, “We were impressed from our initial discussions with Ben and eager to support Zeller’s vision.”

He further noted that Australia’s business banking sector, currently dominated by a few established players, is poised for disruption through more transparent pricing, advanced technology, and superior customer support.