Backers include Valar Ventures and Matrix Capital Management and other U.S. investors. The announcement was marked by the increasing aggressiveness that Xero has shown towards industry leader Intuit in the last two weeks.

In a prepared statement, a Xero spokesperson described Intuit as one of several industry giants experiencing disappointing earnings. "Intuit itself is finding that once you fall behind, it’s hard to catch up," the statement continued. In announcing a QuickBooks conversion services earlier this month, Xero sent out a press release under the title "Xero announces nail in the coffin conversion service."