Zeller, the Australian payments and fintech firm, has announced that it has raised AUD 50 million in its latest round of fundraising which was led by Square Capital.
This latest fundraise sends its valuation to more than AUD 400 million and marks the entry of a new age payment and fintech firm into the financial services industry in a big manner which is likely to shake up the industry.
It is reported that the company would be seeking a banking license and if that is granted then it would be set up as a challenge to the existing 4 major banks in Australia. With the company expected to lean towards digital banking and payments, it is likely to have a clear advantage in that aspect.
“We built Zeller to connect the disparate financial services, payments, and banking tools that Australian businesses use every day … and our partnership with Spark Capital helps us accelerate the development of these new products,” Zeller Chief Executive Ben Pfisterer said.
Currently, the company builds and sells terminals and software that are used by merchants and businesses to collect and manage customer payments and this industry is expected to grow in a large manner in the coming months.
The company was founded last year and it said that it was able to onboard more than 1,500 businesses within the first month of its launch and that 80% of those had switched from another provider to their platform which shows that the software and the platform have shown some strong features to attract the market.
In a press statement, Spark Capital investor James Kuklinski said, “From our first meeting with Ben, we knew we wanted to be a part of Zeller. Australia’s business banking landscape is dominated by a small group of incumbents, and is ripe for disruption through simpler, more transparent pricing, best-in-class technology, and better customer service.”
Currently, Zeller focuses on business banking and merchant and it is generally believed that this field would grow manifold during this period. The company is also expected to use the funding for growing the team and upgrading the platform and then would be looking to expand its operations beyond payment and merchant services. The potential is very high especially in a country like Australia where technology still remains underdeveloped in many places.