Payments fintech Zeller now a unicorn after closing $100 million funding round

Australian payments solution Zeller can now consider itself part of the unicorn club, following a $100 million funding round that pushes its valuation north of $1 billion.

The Melbourne-based group announced today it closed the Series B raise, which was led by US-based venture capital fund Headline and Australian industry superannuation fund Hostplus.

The company says it will double down on the development of its fully integrated financial operating system for business owners which has only been live for eight months, during which the company has attracted more than 10,000 Australian business customers.

Alongside Headline and Hostplus, previous investors Square Peg, Addition and Spark Capital returned to participate in the Series B.

The latest injection of capital builds on $25 million raised prior to the company’s public launch, and $50 million secured in June last year.

“We’re excited to be entering Zeller’s next growth phase, as we rapidly expand our product range to offer businesses access to every financial services product they might need to thrive,” said Zeller co-founder and CEO Ben Pfisterer, who started the business with Dominic Yap.

“Listening to feedback from over 10,000 businesses who joined Zeller in our first eight months helps us to continually build new products that meet their evolving needs, as they reestablish themselves following the pandemic.

“In collaboration with our growing Australian customer base, we hear that they want a single financial services solution that brings together every product they need to run and grow their business.”

Headline principal King Goh said the fintech scaleup was well on its way to “redefining how financial connectivity is delivered to Australian businesses”.

“Businesses of all sizes are now expecting their financial services to be provided via a best-in-class experience given the rapid evolution in modern data availability and business needs.

“Zeller's remarkable growth over the past eight months is a testament to how they are reimagining the traditional business banking industry. Ben and the team have built strong core products, and we are looking forward to working with them to grow and expand on this foundation.”

The company also announced the upcoming launch of new omnichannel commerce capabilities for customers, enabling merchants to accept payments online with Zeller.

Business owners will be able to use Zeller payment processing when selling products or sending invoices online, and then track sales and analyse all payments data across every sales channel from the ‘Zeller Dashboard’.

“With the accelerated displacement of cash, we have seen in-person card payments experience unprecedented growth. Yet over nine million Australians transacted online last financial year, so it’s critical that businesses can accept payments wherever their customers are,” Pfisterer said.

“Delivering the tools to accept payments and get a complete view of their business, be it in-store or online, is our first step into seamless omnichannel commerce.

“New integrations with industry-leading website and e-commerce platforms will give our customers a single view of their business and reduce the complexity of having to navigate numerous, disparate systems and providers.” 

Pfisterer said the company would focus on accelerating development of new financial service solutions this year that will give customers more options, from payments, to expense management, finances, credit and more.

“Our team set out to reimagine business banking by delivering a two-sided finance services operating system. We’ve built new solutions from the ground up that redefine how merchants accept payments, manage finances, and spend their funds,” Pfisterer said.

“Banking should no longer be purely transactional — it’s about connecting buyers with sellers, and enabling merchants with a better understanding of how their customers, suppliers and employees interact with their business.

“This year we will deliver innovative financial services to further replace outdated business banking solutions — including next-generation banking capabilities, enhanced credit and debit cards, expense management, lending, and more. We want Zeller to be at the centre of a business’ financial ecosystem, enabling them to have a complete view of every customer interaction and the overall health of their business.”