Trends Report

Xero’s Waddle Acquisition Signals The Firm’s Move Into Lending (Without Becoming A Lender)

August 25th, 2020


On August 25, 2020, accounting software provider Xero acquired Waddle, a cloud-based invoice lending platform, for A$80 million to help small- and medium-sized businesses (SMBs) get access to working capital. The acquisition comes at a time when SMBs globally are experiencing a serious credit crunch due to COVID-19, and lenders are struggling to underwrite and disburse loans at speed to give SMBs access to the working capital they need. Xero’s Waddle acquisition provides SMBs with expanded options for their financing needs, offers banks a new transformation partner, and creates a more formidable competitor for other startups in the SMB space. Digital banking strategy pros should accelerate digital lending transformation, either building an SMB ecosystem or integrating into existing SMB ecosystems to help SMB customers. Book an inquiry for help.

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