May 10, 2024 02:52 PM IST
Airwallex has held talks with several Middle Eastern sovereign wealth funds to raise capital as the payment platform startup prepares to join global peers in expanding into the region.
Airwallex has held talks with several Middle Eastern sovereign wealth funds to raise capital as the payment platform startup prepares to join global peers in expanding into the region.
The company has in recent weeks held discussions with Abu Dhabi Investment Authority, Mubadala Investment Co. and Saudi Arabia’s Public Investment Fund, Chief Executive Officer Jack Zhang said in an interview with Bloomberg News.
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“Additional investment helps to continue to fuel Airwallex’s growth, particularly for our regional expansion plans as well as AI-driven product innovation,” Zhang said. The company is cashflow positive and has half a billion dollars in the bank, he said.
Founded in 2015 in Melbourne, Australia, the firm provides services including cross-border end-to-end payments and finance solutions for customers. It’s raised $902 million from backers including Tencent Holdings Ltd., and is valued at $5.6 billion, according to its website.
Airwallex, which has over 20 offices around the world, plans to start operations in the United Arab Emirates and Saudi Arabia in the first phase of its Middle Eastern expansion, and eventually expand into Qatar and Bahrain.
It competes with the likes of PayPal Holdings Inc. and Revolut Ltd., which already operate in the region. Zhang expects the firm to be able secure a license in the UAE in six to 12 months, while approval in Saudi Arabia could could take up to 18 months.
“I think in the last few years the regulatory landscape is getting more transparent and we felt the timing is right for us to come,” he said. “A lot of our competition is already here so we are also playing a bit of a catch up game.”
Airwallex is already in talks with several fintech firms in the region to help them expand. The company can also help international companies looking to enter the Middle East by providing them a single payments platform, Zhang said.
Airwallex, which acquired an online payment business license in China last year, is counting on growing ties between the Middle East and Beijing to boost its business in the region. The firm has 60 licenses and permits globally, in markets including Australia and New Zealand, Europe, Hong Kong, Singapore, the UK and the US.
“We are the second only foreign payments company regulated in China after Paypal,” Zhang said. “And being an Australian firm gives us a unique angle to facilitating these partnerships between Beijing and this region.”
This article was generated from an automated news agency feed without modifications to text.
