Global Fintech platform Airwallex is in discussions with several Middle Eastern sovereign wealth funds as it seeks to raise capital for regional expansion, according to CEO Jack Zhang.
The Melbourne-based startup has engaged with Abu Dhabi Investment Authority, Mubadala Investment Co, and Saudi Arabia’s Public Investment Fund, as revealed in a Bloomberg interview.
Founded in 2015, Airwallex offers comprehensive cross-border payment and financial solutions.
The company, which is cash flow-positive with $500 million in reserves, has raised $902 million to date, boasting a valuation of $5.6 billion. Its investors include Tencent Holdings Ltd among others.
The company plans to initiate operations in the United Arab Emirates and Saudi Arabia as part of its first phase of expansion into the Middle East, with further plans to extend into Qatar and Bahrain.
Competing with established players like PayPal Holdings Inc and Revolut Ltd, Airwallex anticipates securing operational licenses in the UAE within six to twelve months, while approvals in Saudi Arabia may take up to 18 months.
Zhang highlighted the improving regulatory environment in the region as timely for Airwallex’s entry.
“A lot of our competition is already here, so we are also playing a bit of a catch-up game,” he noted.
In addition to its expansion efforts, Airwallex is engaging with local fintech firms to support their growth and aims to assist international companies entering the Middle East with its unified payments platform.
Last year, the company secured an online payment business license in China, and it now holds 60 licenses and permits worldwide.
Zhang also emphasized the strategic advantage of being an Australian firm, facilitating partnerships between Beijing and the Middle East.
“We are the second only foreign payments company regulated in China, after PayPal,” Zhang added, underscoring the company’s unique position in the market.