Airwallex Soars to $500M ARR: Tencent-Backed Fintech Eyes 2026 IPO and $1B Revenue Target

Tencent-Backed 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, with CEO and co-founder Jack Zhang aiming for a $1 billion ARR milestone within the next two to three years.

The fintech firm has seen significant growth in developed markets, particularly in the U.K., Europe, and North America. Revenue in the Americas surged by over 300% year-over-year, with these regions now accounting for more than 35% of overall transaction volumes.

As part of its IPO preparations, Airwallex plans to be ready for public listing within the next two years, with a final decision on the offering to be made after 2026. The company has already crossed $100 billion in annual payment processing volumes, marking a 73% increase from the previous year. Airwallex aims to reach $200 billion in payment processing volumes within the next 12 months.

While currently operating at a loss, Airwallex achieved monthly profitability in December 2023 and January 2024. The company is not prioritizing annual net profit due to its rapid growth pace. Instead, it is leveraging artificial intelligence to increase employee productivity and reduce costs.

In an innovative move, Airwallex is experimenting with AI-powered “digital workers” to replace sales development representatives (SDRs). The company believes it could potentially replace up to 70% of SDR roles with AI, allowing one human SDR to manage five virtual counterparts.

Despite conservative investor sentiment in the fintech industry, Airwallex is positioning itself as a major IPO candidate. The company aims to become the leading global payments provider within the financial space, joining the ranks of successful large fintech companies like Nubank, Revolut, Stripe, and Adyen.

As Airwallex continues its growth trajectory and prepares for a potential IPO, industry observers will be closely watching its progress in the competitive global payments market.