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A fintech disruptor has raised $100 million to steal Australia’s 2.1 million SMEs away from the big banks

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Tyro CEO Jost Stollman with new non-executive director Catherine Harris

Tyro Payments, Australia’s independent and fastest growing EFTPOS provider, recently raised $100 million from Tiger Global Management in New York, TDM Asset Management in Sydney and Australian technology entrepreneur Mike Cannon-Brookes, the co-founder and CEO of Atlassian, an innovative, award-winning enterprise software company.

Tyro will use the new funds to fuel the next stage of its ambitious growth strategy, by accelerating its growth initiatives and new product development to provide innovative payment and banking solutions to its customers.

The company now serves more than 14,000 businesses in Australia and processes over $8 billion annually in transactions through its internally developed, cloud based platform that seamlessly integrates with its customers’ business systems providing a fast, reliable, easy-to-use payment solution.

What exactly does Tyro do?

Tyro is the issuer of its own financial products. Tyro is Australia’s EFTPOS innovation institution and was the first new entrant into the EFTPOS business in over 18 years.

In August this year, Tyro became the first Australian tech company to be granted a banking licence by the Australian Prudential Regulatory Authority, allowing it to accept deposits and to advance money to Australian businesses.

Under this authority and the Australian Financial Services (AFS) Licence 471951, Tyro provides credit, debit, EFTPOS, gift and loyalty card acquiring and Medicare claiming and rebating services.

“We are coming together with Australia’s 2.1 million SMEs, software and fintech companies to build a new ecosystem that is disrupting the established banks by offering better products and experiences,” Tyro CEO Jost Stollmann said.

“SMEs are essential to productivity growth and job creation in our economy. We want to build a new banking ecosystem that allows SMEs in whatever business – be it retail shops, pharmacies, medical practices, restaurants, pubs or hotels – to compete better.”

In FY2015, Tyro saw its gross revenue grow by 38 per cent to $72.4 million and it successfully opened the Tyro Fintech Hub where like-minded entrepreneurs can interact and co-develop open APIs.

What next for Tyro?

As part of this $100 million capital injection, experienced retail businesswoman Catherine Harris will join Tyro as an independent non-executive director from 17 December 2015.

Catherine is a highly accomplished director with extensive retail experience as Chair of Australia’s largest independent produce retailer, Harris Farm Markets.

She is also a Commissioner of the Australian Rugby League and Director of UNSW School of Business Council, Governor of the University of Notre Dame and the Sport Australia Hall of Fame.

Tyro Chairman Kerry Roxburgh welcomed her appointment, saying she would bring new skills and perspectives to the Board.

“Catherine Harris is one of Australia’s most astute business figures, who will bring enormous insight into the dynamics that drive a successful retail business,” he said.

Furthermore, since its establishment 12 years ago, Tyro has built up a team of 150 software engineers to develop and launch new banking products.

Over the next three years, it plans to triple the number of software engineers to 450, with the aim of shaking up the Australian banking industry further, with a suite of new digital products that will save businesses time and money.

“Tyro is poised for breakout growth, driven by innovation and commitment to fair and transparent banking,” Jost said. “We will transform banking for SMEs and provide them with frictionless solutions tailored to their needs, so that they can concentrate on growing their business.”

”We make no apology for attracting some of Australia’s top software engineers, attracted by our creativity, agility and ability to transform the country’s banking system.

“It is an exciting time.”

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