Airwallex Hits $500M ARR, Eyes 2026 IPO
Airwallex, the Tencent-backed payments startup recently valued at $5.6 billion, has announced achieving an annual revenue run rate (ARR) of $500 million. The company is now setting its sights on an initial public offering (IPO) by 2026, according to CEO and co-founder Jack Zhang.
In a recent interview, Zhang outlined ambitious goals for the fintech firm, including reaching a $1 billion ARR by 2026 or 2027. The company has experienced significant growth in developed markets, with revenue in the Americas region surging by over 300% year-over-year. The U.K., Europe, and North America now account for more than 35% of Airwallex’s overall transaction volumes.
Zhang stated that the company is preparing for IPO readiness in the next two years, with a final decision on going public to be made post-2026. Airwallex has already crossed $100 billion in annual payment processing volumes this year, marking a 73% increase from the previous year. The company aims to reach $200 billion in payment processing volumes in less than a year.
Despite being currently lossmaking, Airwallex achieved monthly profitability in December 2023 and January this year. The company is not prioritizing annual net profit due to its focus on growth. To enhance efficiency, Airwallex is leveraging artificial intelligence to boost employee productivity and reduce costs. The firm is experimenting with digital “AI workers” to replace sales development representatives (SDRs), with the potential to replace up to 70% of SDR roles with AI.
As a major fintech IPO candidate, Airwallex faces a conservative investor sentiment in the sector. However, Zhang remains optimistic, citing positive outlooks for large fintech companies like Nubank, Revolut, Stripe, and Adyen. The CEO expressed Airwallex’s ambition to become the number one player in global payments within the financial space.
With its strong growth trajectory and innovative use of AI, Airwallex is positioning itself as a formidable contender in the global fintech landscape as it prepares for a potential IPO in the coming years.
