Airwallex, a Tencent-backed fintech startup recently valued at $5.5 billion, has reached a significant financial milestone by hitting $500 million in annual revenue. The company’s CEO and co-founder Jack Zhang revealed in a recent discussion that Airwallex is targeting an initial public offering (IPO) by 2026.
During the interview, Zhang expressed optimism that the company’s annual recurring revenue will potentially double to $1 billion by 2027. Airwallex’s growth trajectory has been steep, supported by strategic expansions in key markets in the UK, Europe and North America. These regions now contribute more than 35% of the company’s total trading volume, reflecting a robust increase in their market presence.
Zhang shared that revenue in the Americas alone increased 300% year-on-year. He also highlighted a notable achievement in payment processing volumes, which surpassed $100 billion this year, marking a 73% increase from the previous year.
Looking ahead to the IPO, Zhang said 2025 will be all about getting the company ready for the IPO, after which they will evaluate the best course of action. Despite rapid growth, Airwallex remains unprofitable on an annual basis, although it has reported profitability on a monthly basis in recent months.
To manage costs effectively, Airwallex has turned to artificial intelligence. The company is piloting a program with 11x, which provides digital “AI workers” that could potentially replace up to 70% of its sales development roles, aiming to improve productivity and reduce operating costs.
Despite a challenging fintech landscape with cautious investor sentiment, Zhang remains bullish on the future. He believes that while the industry faces skepticism, the substantial size of the market and the success stories of other fintech giants like Nubank and Stripe offer a positive outlook for companies that continue to innovate and lead in their space.
Airwallex’s journey to an IPO in the competitive fintech landscape reflects its ambition and strategic positioning, which aims to consolidate its status as a global leader in financial payments.
