Airwallex Reaches $1 Billion Revenue Milestone, Competes with Ramp and Stripe in U.S.
Airwallex has achieved a significant milestone, reaching $1 billion in annualized revenue as of October 2023. This accomplishment marks a remarkable year-over-year growth rate of 90%, according to co-founder and CEO Jack Zhang. With this achievement, the Singapore-based fintech company is positioning itself to compete head-to-head with established players such as Ramp and Stripe, particularly in the U.S. market.
Rapid Growth and Expansion
Founded in 2015, Airwallex took just nine years to hit its first $500 million in annualized revenue. Remarkably, that figure doubled in just one additional year. The company’s diverse product offerings now include business banking accounts and spend management solutions, helping it contend with a variety of fintech companies such as Mercury, Brex, and Revolut.
Competitive Landscape
Despite its rapid growth, Airwallex still lacks the brand recognition of competitors like Ramp and Stripe, especially within the U.S. market. However, the company is actively expanding its presence in North America and Europe. Currently, North America and Europe account for approximately 40% of Airwallex’s revenue—an impressive rise from none just a few years ago.
Product Diversification
- Business accounts: 34% of revenue
- Spend management: 20% of revenue
- Payments: 30% of revenue
This diversified revenue stream demonstrates Airwallex’s commitment to a comprehensive suite of financial solutions tailored for global businesses. The company’s infrastructure, including regulatory and financial services, is considered a significant advantage in the competitive fintech landscape.
Looking Ahead: Profitability and Innovation
Airwallex achieved cash flow positivity by the end of 2023. The company plans to reinvest in its growth while aiming for profitability once again by the fourth quarter of 2025. Zhang emphasized that Airwallex’s status as an outsider to the Silicon Valley ecosystem has been a unique advantage in its business strategies.
Technological Focus
Artificial intelligence (AI) is a priority for Airwallex, with Zhang developing a wallet product designed to enhance global payment operations. The company is also exploring stablecoin development, although Zhang expresses skepticism about blockchain’s ability to improve global money movement compared to existing solutions.
As Airwallex continues to expand and innovate, it positions itself as a formidable player in the fintech sector, challenging both established and emerging companies in the competitive landscape.
