Airwallex, the payments startup backed by Tencent, has reached an annual revenue run rate of $500 million and is positioning itself for a potential initial public offering (IPO) by 2026, CEO and co-founder Jack Zhang disclosed in an exclusive interview with CNBC.
Zhang revealed that reaching the $1 billion revenue milestone is the firm’s next major target. “Hopefully we can achieve that in 2026, or 2027. That is the goal,” he stated. The revenue run rate provides an estimate of annual revenue based on current monthly performance.
Airwallex has experienced substantial growth in the past year, fueled by its expansion into key developed markets such as the U.K., Europe, and North America. In the Americas alone, the company’s revenue surged by over 300% year-over-year. Zhang noted that these regions now represent more than 35% of Airwallex’s overall transaction volumes.
Regarding the IPO prospects, Zhang emphasized that the company’s focus is on becoming IPO-ready by 2025, with the decision to go public or remain private to be made thereafter. “For us, it’s just about getting IPO-ready in the next two years so that we have the choice to go or not go,” he said.
Airwallex has also surpassed $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 a shorter timeframe, according to Zhang.
Despite being currently unprofitable, Airwallex achieved monthly profitability in December 2023 and January 2024. Zhang indicated that while the company is not focusing on annual net profit at this stage, it is leveraging artificial intelligence to enhance productivity and reduce costs. Airwallex is piloting AI-driven solutions, such as those provided by 11x, to potentially replace up to 70% of its sales development representatives with AI agents.
With a recent valuation of $5.6 billion, Airwallex is viewed as a significant fintech IPO candidate. However, Zhang acknowledged the current cautious sentiment in the financial technology sector. “Investor perception is still not great and is still conservative,” he noted, but expressed optimism about the sector’s potential, citing the success of major fintech players like Nubank, Revolut, Stripe, and Adyen.
“Our goal is to ensure that Airwallex remains a top contender in global payments within the financial space,” Zhang concluded.
