Xero eyes expansion into Asia

Wellington online accounting firm Xero is looking to expand into Asia after increasing customer numbers six-fold since September last year.

Chief executive Rod Drury says the company, which has already launched in Australia and Britain, is gearing up to take on the United States market next year but is also considering other options closer to home.

"We're looking at parts of Asia, in particular the English-speaking parts. We haven't thought about it too much but we're getting lots of customers over there.

"We're looking at to what extent we go after the US which is probably the biggest prize but potentially more competitive, and to what extent we leverage and go through markets outside the US which aren't as competitive. It's a matter of degrees and priorities."

Xero will establish an office in San Francisco early next year and has hundreds of customers there already, Mr Drury says.

A reseller deal with a US telecommunications carrier – similar to those it has with Telecom in New Zealand, Telstra in Australia and British Telecom in Britain – would be ideal, but Xero could also look to harness the reach of other companies.

"There are lots of brands that deal with small businesses there, lots of chains and franchise opportunities. It's a much more connected place."

Xero has more than 12,000 customers in more than 50 countries – up from 2200 at the end of September last year.

It has hired about 25 staff in the last six months, boosting its total headcount to 73. Most of its new staff are software developers based in the capital.

- © Fairfax NZ News