NEW YORK (TheStreet) Xero CEO Rod Drury is determined to take the U.S. by storm.
The New Zealand-based cloud accounting software provider is considering an initial public stock offering in the U.S. sometime in 2015, Drury told The Street in an exclusive interview.
Xero (prounounced "zero"), which caters to small and medium-sized businesses, went public in New Zealand in 2007 in a $15 million stock offering.
The company already has over 400,000 users, the majority in its first three key markets - New Zealand, Australia, and the U.K. But the startup wants to bring the fight to the U.S., where it estimates there are a potential 29 million customers.
In November, Xero acquired Seattle-based online payroll service Monchilla for approximately $4.1 million in order to help it gain a stronger U.S. base.
The acquisition also paves the way for the development of a more robust suite of U.S.-specific services and helps Xero establish a stronger brand presence in America.
Xero received $150 million in a round of funding last year. But as Drury points out, it differs from many other start-ups not only in its size and ambitions, but because it went public early in its infancy.
Early funding also came from Silicon Valley investor Peter Thiel, well-known for his critical early investments in the likes of Facebook and PayPal. Thiel's presence underscores Xero's commitment to "disruptive" innovation as a means for overtaking established American brands, such as Intuit Quickbooks, Drury said.
In addition to committing heavy resources to the U.S. market, the company's goal is to deliver on innovation for small and medium-sized businesses via its cloud-based applications.
The company recently posted an after-tax net loss of $24.5 million for the six months ending Sept. 30, 2014, citing its investment in product development and sales and marketing. Xero saw a 76% increase in paying customers in the six-month period, driving subscription revenue 85% higher to $52.0 million from $28.1 million in the same period last year.
By Janet Al-Saad