Xero to use R&D grant to accelerate exports
08/15/2011 | 07:50pmMARKET RELEASE
Xero to use R&D grant to accelerate exports
15 August 2011
Online accounting software provider Xero (XRO) is one of 19 businesses to receive a Technology Development
Grant from the Ministry of Science and Innovation.
The Technology Development Grant supports firms with a proven track record in research development (R&D) and which spend a significant proportion of their revenue on R&D. A total of $50 million will be allocated in the investment round just announced.
Xero will receive up to $4,040,000 (excl. GST) over the next three years.
R&D investment has been key to Xero since it was established in 2006, ensuring the company acquires new customers, reduces product service delivery costs and keeps existing customers by continuing to innovate.
“R&D is a big part of our growth strategy over the next 3-5 years and the grant allows us to go even faster,” says
Xero CEO Rod Drury.
He says a commitment to R&D has allowed Xero to successfully build specific features for the New Zealand, Australian, UK and US markets. Adding to the company’s R&D capacity allows it to innovate faster and service more customers globally. Xero is also reversing the trend to sell New Zealand tech companies by recently acquiring an Australian R&D company innovating in online payroll.
For the year ended 31 March 2011, 36 percent of Xero’s revenue came from offshore sales. After recently announcing a 25% increase in customer growth for the last four months, the company expects revenue from overseas to exceed New Zealand revenue in the not too distant future.
“Xero contributes significantly to New Zealand exports,“ says Rod Drury. “The majority of our future growth will come from customers in Australia, the UK, USA and new territories. This grant helps speed up our export drive into these territories and beyond. “
Xero has a product development and global support team of over 100 people based in Wellington and is in the market for significantly more R&D staff. The company has already created skilled jobs for more than 130 employees worldwide.
For more information contact:
Paul Williams
Xero General Manager, Finance paul.williams@xero.com
+64 27 231 5043
