In the electrifying realm of fintech, where heavyweights like Stripe and Ramp are stealing the show with massive funding and explosive expansion, one under-the-radar player from Asia is quietly gearing up to challenge the status quo. Imagine a company not just keeping pace, but surging ahead with a staggering 90% year-over-year growth—now that's the kind of story that grabs your attention! But here's where it gets fascinating: Airwallex, the Singapore-based fintech unicorn, has just hit a monumental milestone, crossing $1 billion in annualized revenue as of October. For those new to these terms, annualized revenue essentially means the total income projected over a full year based on current trends, giving a clearer picture of a company's financial health than just a snapshot in time.
In a candid chat with Fortune, cofounder and CEO Jack Zhang revealed how Airwallex, originally renowned for simplifying cross-border payments—think seamlessly transferring money across international borders without hefty fees—and foreign exchange services, has branched out into a comprehensive array of tools. This includes user-friendly business banking accounts for everyday operations and spend management to track and control company expenses, positioning it as a direct rival to industry titans like Ramp, Stripe, Mercury, Brex, and even Revolut. 'We're up against a whole crowd,' Zhang quipped with a laugh, highlighting the crowded battlefield they're navigating. And this is the part most people miss: despite not having the household name status of its U.S. counterparts, Airwallex is ramping up its presence in North America and Europe, potentially shifting the landscape.
Launched in 2015, Airwallex took nearly a decade to climb to its first $500 million in annualized revenue, but remarkably, it doubled that figure in just one additional year. With impressive gross profit margins exceeding 60%, as shared by Zhang, the company is solidifying its foothold in the U.S. market. To put this in perspective, consider how fintech firms like Ramp started with corporate credit cards as their core offering, allowing them to expand into broader financial suites, while Mercury focused on streamlined business banking, and Stripe revolutionized online payment processing. Airwallex's latest valuation stands at $6 billion from a May funding round, a far cry from Ramp's $22.5 billion or Stripe's colossal $106 billion, yet it underscores the company's rapid ascent.
Having turned cash flow positive by late 2023, Airwallex is channeling profits back into growth, with plans to regain full profitability by the end of 2025—a strategic move that's common in scaling startups to build long-term resilience. 'A big part of our edge comes from being an outsider,' Zhang explained. 'We're not entrenched in the Silicon Valley bubble.' This outsider perspective could be a game-changer, offering fresh ideas unburdened by the usual tech hub biases, but it also sparks debate: can a non-Valley player really disrupt the established giants? It's a controversial angle worth pondering—some might argue Silicon Valley's innovation ecosystem fosters groundbreaking tech, while others see value in diverse viewpoints that avoid groupthink.
From its humble beginnings in Melbourne, Airwallex relocated to Singapore's bustling finance hub after expanding there in early 2022. Zhang emphasized the need for a global outlook from the start, given Australia's limited market size—much like how a small-town business might need to think nationwide to thrive. Originally centered on cross-border payments, the company's income is now diversified across multiple products: business accounts akin to Mercury's make up 34% of revenue, spend management accounts for 20%, and payments for 30%. To add value, Airwallex extends its global network of licenses and services via API integrations, empowering other fintechs like Brex, Rippling, and Deel to expand internationally. 'Our true strength lies in the robust infrastructure we've developed over the past decade, covering regulatory compliance and financial services,' Zhang noted, illustrating how this 'moat'—a competitive advantage hard to replicate—protects them from rivals.
As Airwallex intensifies its North American push, including establishing a U.S. headquarters in San Francisco last year, Zhang is clear-eyed about the competition. He won't vie with Ramp for purely domestic U.S. clients but targets companies with worldwide ambitions, needing tools to issue employee cards, manage bank accounts, and handle payments across multiple countries. North America and Europe now generate nearly 40% of their revenue, up from zero just a few years back—a testament to their strategic focus. To break it down simply: if your U.S.-based business is confined to, say, operating solely in one state like Ohio, a localized player like Ramp might suffice. But for a company eyeing sales in Australia, Singapore, the U.K., or Canada, and seeking an all-in-one platform for banking, payments, spending, and treasury management, Airwallex emerges as the ideal partner.
Like many in tech, AI is a hot topic for Airwallex, with Zhang developing a wallet product that could underpin global 'agentic' payments—think AI-driven assistants handling transactions autonomously. He aims for the AI agents business to reach hundreds of millions in scale before eyeing an IPO. The company has also brought on stablecoin experts, tapping into the buzz around digital currencies, yet Zhang harbors doubts about blockchain's superiority in moving money globally. 'Adoption by merchants is still minimal, and there's little action in business-to-business transactions,' he said. 'I'm 99% skeptical, with just a 1% chance it pans out.' This skepticism is ripe for controversy—supporters of crypto might see blockchain as revolutionary, potentially democratizing finance, while critics, like Zhang, point to slow adoption and inefficiencies. Is blockchain overhyped, or is it the future of payments? And on a broader scale, can an Asian fintech like Airwallex genuinely rival U.S. behemoths, or is Silicon Valley's dominance unbeatable? We'd love to hear your take—what do you think about these developments? Agree with Zhang's outsider approach? Skeptical about blockchain too? Drop your thoughts in the comments and let's discuss!
