Tencent-backed Airwallex nears $500 million annualized sales, aims to get IPO-ready by 2026
Airwallex, the fintech giant backed by Tencent, is on the verge of reaching an impressive annual revenue run rate of $500 million, according to CEO and co-founder Jack Zhang in a recent declaration. With plans to ready the company for an initial public offering (IPO) by 2026, Airwallex is setting ambitious growth targets for the coming years.
In an era where fintech startups are increasingly becoming the backbone of global ecommerce and payments, Airwallex’s rapid growth is noteworthy. The company, which has achieved a valuation of $5.5 billion, has become a significant player in the financial technology arena, drawing attention as a potential candidate for a public listing.
Zhang revealed the company’s aspiration to double its current milestone, eyeing a $1 billion annual revenue run rate by 2026 or 2027. This goal comes after substantial growth fueled by the company’s expansion into key developed markets, including the U.K., Europe, and North America. Zhang notes that these regions now contribute to more than 35% of Airwallex’s total transaction volumes.
The company’s success story extends beyond revenue figures, with a reported 73% increase from the previous year in annual payment processing volumes, crossing the $100 billion threshold. This achievement underscores the robust demand across Airwallex’s suite of offerings, from payments to foreign exchange and payouts.
Despite the impressive milestones, Airwallex is not placing immediate emphasis on net profits amidst its rapid expansion phase. Instead, the company is exploring innovative ways to drive efficiency and reduce costs, notably through the integration of artificial intelligence (AI). Zhang highlighted the trial of adopting “AI workers” as a strategic move to automate and streamline operations which could potentially replace up to 70% of their sales development personnel, showcasing the firm’s commitment to leveraging cutting-edge technology to enhance productivity.
The path to an IPO is meticulously planned, with Zhang stating the intention to have everything in place for a decision post-2026. The preparation phase, expected to commence in 2025, will determine the timing and feasibility of going public, providing Airwallex with strategic flexibility based on market conditions and the company’s performance.
Despite the current conservative investor sentiment towards the fintech sector, Zhang remains optimistic about the industry’s potential and Airwallex’s position within the market. He believes that despite the challenges, the fintech space continues to offer substantial opportunities for growth and innovation, particularly for companies that lead in global payment solutions.
As Airwallex continues to scale and evolve, its journey towards an IPO represents a significant milestone not just for the company but for the broader fintech ecosystem, signaling the enduring strength and potential of innovative financial technologies in facilitating global commerce.
