Australian business banking alternative Zeller has secured A$50m from a recent funding round to supercharge the development of its integrated business banking platform.
The investment round was led by Spark Capital and also saw participation from Square Peg, Apex Capital Partners and Addition. To date, Zeller has raised A$81m in 12 months – making it Australia’s most valuable pre-launch start-up.
Founded in 2020, Zeller combines accepting payment, managing finances and paying recipients fast and brings them into one connected ecosystem. The firm claims its helps users reduce the time spent on finding providers, completing long applications, onboarding, and getting set up.
According to Zeller, the funding raised will be used to rapidly accelerate the development of its integrated business banking platform and expand its product and engineering footprint across Australia by adding 18 new employee positions within those respective teams.
Zeller recently launched its platform on May 4 this year. The firm claims it has seen exceeded demand since the launch, with over 1,500 Australian firms signing up to the platform within the first month and weekly payment volume growing by 200%.
The company said that of those early adopters, over 80% are switching to Zeller from other firms.
Zeller CEO and co-founder Ben Pfisterer said, “Over 80% of merchants who have signed up for Zeller had an existing business banking relationship with an incumbent. Our team hears how frustrated these business owners are by the lack of service and support they receive, and that they’re paying incredibly high fees for outdated EFTPOS hardware and underdeveloped banking technology
“The fact we’re seeing so many established businesses switching to Zeller from the banks motivates us to double-down on our efforts to build more business banking products that serve the needs of growing businesses.
“We built Zeller to connect the disparate financial services, payments and banking tools that Australian businesses use every day. Our vision is to support the everyday business banking requirements of merchants, and our partnership with Spark Capital helps us accelerate the development of these new products for a rapidly growing customer base who are switching to Zeller from the incumbents.”
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