The news:
- Xero, a global accounting software firm, has announced its acquisition of Syft Analytics, a South African cloud-based reporting and analytics platform, in a deal worth up to $70 million.
- This acquisition, expected to finalise in early 2025, signals a major milestone in Xero’s expansion and commitment to enhancing its reporting and insights capabilities across key markets.
- The South African-based cloud-based reporting, insights and analytics platform — currently available through the Xero App Store as an app partner — will continue operation as a standalone offering to small businesses and their accountants and bookkeepers.
Co-founded in Johannesburg’s Parktown North, South Africa, in 2016 by Eleftherios Kyriazis, Matt Stephanou, and Vangelis Kyriazis, Syft started as a small, bootstrapped business aimed at providing financial analytics for small businesses.
Amid several challenges, the company had 200 customers by the end of 2019 and expanded its team to seven employees.
It wasn’t until during the COVID-19 pandemic, when the demand for cloud-based solutions surged along with remote working and virtual communication, that the analytics platform gained global recognition, reaching as far as Canada and New Zealand.
Currently, Syft says its software serves thousands of customers in over 80 countries, making it the most widely used reporting app on Xero's marketplace.
The acquisition of Syft aligns with Xero’s strategy to offer small businesses and accountants better tools for data-driven decision-making.
Syft’s software allows users to generate custom reports, visualisations, and benchmarks, consolidating data from multiple financial sources like Stripe, Shopify, Square, Gusto, and Excel. Small businesses also use it for budgeting and forecasting, reporting automation, and data quality assurance.
By integrating Syft’s functionality into Xero, the platform will empower small businesses with powerful insights, real-time analysis, multi-entity reporting, and long-term cash flow forecasting.
While Syft will remain available as a standalone product for non-Xero customers, the acquisition strengthens Xero's suite of offerings across key markets like the US, UK, and Australia.
Sukhinder Singh Cassidy, Xero's CEO, emphasised that Syft’s expertise in cloud analytics would enhance Xero’s mission to help small businesses thrive globally.
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Syft, which has over 70 employees, predominantly based in South Africa, will transition to Xero as part of the deal.
“We’re excited to welcome the Syft team and incorporate their expertise to further our global reach,” Cassidy said.This deal also highlights the success of the South African tech ecosystem, with Syft joining a growing list of local startups attracting international buyouts, such as Kenya-born Baobab Network’s acquisition of Reflector Marketing and US-based Deel’s acquisition of PyaSpace.
