Fintech Airwallex hits $5.5 billion valuation after $275 million series E

Melbourne fintech Airwallex has tapped the market for another US$200 million (A$275m) in a series E just six months after topping up its series D round with an extra US$100 million (A$130m).

The payments platform has now raised more than A$1 billion from investors.

This latest raise ups Airwallex’s valuation from US$2.6bn ($3.4bn) in March to US$4bn (A$5.5bn) now.

US-based investment management company Lone Pine Capital led the series E raise. New investors G Squared and Vetamer Capital Management also signed up, alongside existing backers including 1835i Ventures (formerly ANZi), DST Global, Salesforce Ventures and Sequoia Capital China.

Previous investors include Grok Ventures, the private investment vehicle of Mike and Annie Cannon-Brookes, and Skip Capital, run by Kim Jackson, wife of Atlassian co-founder Scott Farquhar.

The series D was A$300 million in total, following on from a $100 million series C back in March 2019.

Airwallex said the investment is for global expansion, to accelerate multiple product development initiatives across its five engineering hubs, grow the sales and commercial teams and increase its breadth of offerings.

Scaling the company’s presence in North America, UK, Europe as well as new markets such as the Middle East, South America and Southeast Asia are all on the drawing board.

The fintech says it has nearly doubled its headcount during 2021 and now employs close to 1,000 employees in more than 20 locations globally. Revenue has grown nearly 150% in the first half of 2021, processing more than US$20 billion with the client base quadrupling in size. The business opened in the US last month.

Lone Pine Capital managing director David Craver said Airwallex has a clear competitive advantage in the digital payments market.

“Its unique Asia-Pacific roots, coupled with its innovative infrastructure, products and services, speak volumes about the business’ global growth opportunities and its impressive expansion in the competitive payment providers space,” he said.

“We are excited to invest in Airwallex at this dynamic time, and look forward to helping drive the company’s expansion and success worldwide.”

In July Airwallex’s founders announced they were launching a $270 million early-stage VC fund to invest invest in tech startups supporting the payments platform.