Tencent-backed payments startup Airwallex reaches $500 million revenue, eyes 2026 IPO

Tencent-backed fintech startup Airwallex has reached an annual revenue run rate of $500 million, driven by strong performance in North American and European markets, the company said on Tuesday.

In an interview with CNBC, CEO Jack Zhang said that the firm is eyeing an initial public offering (IPO) by 2026.

Reflecting on the company’s future, Zhang expressed aspirations to double the current run rate to $1 billion by 2026 or 2027. Airwallex’s revenue run rate provides a rough estimate of its annual earnings based on recent monthly performance.

“I think the next big milestone is the $1 billion,” Zhang told CNBC, in response to a question on what’s next for the 9-year-old startup after crossing the $500 million ARR milestone last month. “Hopefully we can achieve that in 2026, or 2027. That is the goal.”

The revenue run rate provides an estimate of yearly earnings based on the company’s monthly figures. The past year has seen substantial growth for Airwallex, particularly in developed markets like the U.K., Europe, and North America. The company’s revenue in the Americas grew over 300% year-on-year, with these regions now representing over 35% of the company’s total transaction volumes.

When asked about a potential IPO, Zhang said that the focus is to be IPO-ready within the next two years, allowing the company to decide on its course of action by 2026

Founded in 2015, the Singapore-based Airwallex offers a fintech platform for managing global payments and financial operations, aiming to help businesses operate internationally without restrictions. This year, the company processed $100 billion in annual payment volumes, up 73% from the previous year. Zhang hopes to double that figure in less than a year.

Although Airwallex is currently not profitable annually, it did achieve profitability every month in late 2023 and early 2024. Zhang emphasized that the company isn’t focusing on annual net profit at this stage due to its rapid growth, but has managed to control costs effectively, CNBC reported.

One area where Airwallex is innovating is the use of artificial intelligence to enhance productivity. The company is piloting AI solutions to automate parts of its sales development processes, with Zhang anticipating that AI could handle up to 70% of those roles. Despite this shift, Zhang noted that AI will mostly serve to boost the productivity of existing teams.

AirWallex Team