BankTechFintechM&A / Funding

Business banking startup Zeller raises A$50M Series A

Zeller, an Australian banking startup which is attempting to take on Australia’s four core banks, announced an A$50 million Series A funding round, according to a press release.

The funding round closed in the week prior to Zeller’s May 4th launch and was led by Spark Capital, a previous investor in Twitter, Slack, Oculus and Coinbase. Square Peg, Apex Capital Partners and Addition also contributed to the investment. The startup was founded by former Visa executive and Square Asia-Pacific leader Ben Pfisterer, and COO Dominic Yap.

Zeller offers EFTPOS payment terminals, fee-free spending accounts and free business Mastercards to users. The company says it will use the funding to rapidly accelerate development for its integrated business banking platform. It also stated plans to expand product and engineering size across Australia with 18 new positions opening.

“Over 80 percent of merchants who have signed up for Zeller had an existing business banking relationship with an incumbent. Our team hears how frustrated these business owners are by the lack of service and support they receive, and that they’re paying incredibly high fees for outdated EFTPOS hardware and underdeveloped banking technology,” said Ben Pfisterer, Zeller CEO and co-founder.

Zeller has seen large growth in a short time, raising A$81M in 12 months, and signing up 1,500 Australian businesses in the first month and increasing weekly payment volume 200% since launch.

The alternative banking fintech has shown early success trying to take on Australia’s main four banks (Commonwealth Bank of Australia, Westpac, Australia and New Zealand Banking Group, National Australia Bank), with over 80% of businesses that have signed up coming from a big-4 bank.

Zeller says the main reasons businesses have switched include dissatisfaction with high incumbent fees, lack of customer support and outdated EFTPOS payment terminal software.

In other fintech news, payment integration company Mollie raised $800 million in an all-equity funding round led by Blackstone Growth. Migrant digital banking provider MAJORITY also raised $19 million in a seed round, and announced expansion of services to all 50 states.

Latest Articles

2022 HousingWire TECH100 Real Estate Honorees HW+
Mar 11, 2022 By

This year’s list of TECH100 Real Estate honorees represent a huge shift in the direction that the real estate industry is heading in. Though real estate may have fallen behind in technological advances compared to other industries in the past, all of that is changing, and this year’s list of Tech100 winners embody that shift. […]

Content from our partners

Log In

Forgot Password?

Don't have an account? Please

Register

Forgot Password

Please enter your registered email address below to receive a password reset link.

Check Your Email

A password reset email has been sent to the email address on file for your account, but may take several minutes to show up in your inbox. Please wait at least 10 minutes before attempting another reset.

Welcome to FinAssist

Go to your inbox and open 'Welcome to FinAssist, your company discovery platform' to get started. You may also skip your inbox and 'Start tutorial'.