Xero invests USD $25m in Deputy for seamless business management solution

Xero, the renowned small business platform, and Deputy, the global platform for shift work, have declared a mutual partnership today. They aim to offer the world a comprehensive, seamless solution for accounting, payroll, and workforce management. As a significant part of this strategic collaboration, Xero announced its investment of USD $25 million to attain a minority position in Deputy, intending to augment the focus and alignment between the two businesses.

The partnership has been projected to equip hundreds of thousands of Australian businesses with the necessary tools required to triumph in the current dynamic business environment. Among the features on offer, Xero's Australian customers will have access to an embedded shift work management capability powered by Deputy. To further simplify the payroll and workforce management process, the Deputy workforce management capability will be deeply integrated into the Xero platform, establishing workforce management and Xero's payroll and accounting in one place.

On this ambitious venture, Sukhinder Singh Cassidy, CEO of Xero, stated, "As part of our focused FY25-27 strategy, Xero continues to optimise how we allocate resources to get the right results for customers, Xero, and our stakeholders. As part of our commitment to help small businesses run more effectively, we're excited to deepen our already strong integration partnership with Deputy to bring their workforce management technology to Xero's Australian customers, all in one platform."

Cassidy further confirmed the retirement of its Planday business in Australia. However, the focus will continue to remain on Planday's core business in Europe, including the UK. Until 30 September 2024, Planday will continue to support its Australian customers, providing them with the option to transition their workforce management needs to Xero's preferred partner, Deputy.

Cassiday notes that this change provides an opportunity for Planday to concentrate its efforts on its robust core European markets, further maximising subscriber growth and customer value creation opportunities.

The excitement over this strategic partnership was echoed by Silvija Martincevic, CEO of Deputy, who avowed, "Deputy is thrilled to announce this transformative strategic partnership with Xero as it connects two industry-leading global companies to offer a seamless all-in-one solution for accounting, payroll, and workforce management. This collaboration reflects our shared dedication to product excellence, innovation, and serving the needs of small businesses."

Martincevic further highlighted that the integration of their platforms through this partnership will empower hundreds of thousands of businesses across Australia with the tools they need to thrive in today's dynamic business scene. This conjoining of resources could potentially have an immense impact on improving businesses' effectiveness and efficiency, ultimately equipping them to better navigate the ever-evolving market landscape.