US-based Valar Ventures and Matrix Capital Management are upping their stakes in cloud accounting software maker Xero, which has yet to turn a profit but says it's focusing on ramping up growth.
The Peter Thiel-backed Valar Ventures will raise its share in Xero to 7 percent from 3.9 percent, and Matrix's holding is rising to 9.8 percent from 1.8 percent, BusinessDesk reported.
Their collective interests are increasing by $60 million in freshly-issued capital and $22 million in shares purchased from Xero's largest shareholders – director Craig Winkler, chief executive Rod Drury, and co-founder Hamish Edwards.
A total of 10 million new shares have been issued at $6 a share, though Xero units climbed to $6.55 following the announcement.
Xero reported $38.7 million in monthly revenues for November, up from $18 million a year earlier, and a $7.7 million loss for the six months to September.