About $123m of the capital came from US-based investors, which the Australian-listed company said would help it execute its strategy in the county.
The transactions were priced at $15.10 per share for 9.92 million shares, representing eight per cent of the shares on issue after the raise.
Matrix previously invested $47m in the business in November 2012, with Valar providing $20m.
David Goel said, managing member at Matrix, said, “Xero is emerging as the definitive software platform for small business worldwide.
“Capturing the power and affordability of cloud-based computing, Xero has democratized accounting, payroll, and other business software that was once the privilege of only the largest companies.
“Having empowered hundreds of thousands of small and medium-sized businesses in New Zealand, Australia, and the United Kingdom, Xero is poised to do the same for its 29 million potential customers in the United States.
“We are adding to our investment to help facilitate and accelerate this goal.”
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