5 Strategies Airwallex Used to Scale to $3.1 Billion Business

Did you know that Jack Zhang, one of the co-founders of Airwallex, used to work in a Lemon Factory? as a truck-loader before starting Airwallex!

Airwallex is a global financial and payments platform that helps businesses grow beyond borders.

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It was founded by Jack Zhang (a former engineer), Max Li (ex-Cafe Owner), Lucy Liu (Former Investment banker) and Xijing Di (an expert in Technology and Big data), in 2015, in Melbourne.

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The founders recognized the high costs and inefficiencies associated with international payments, especially for SMEs and Mid Market accounts.
Conventional banking channels charged hefty fees and offered in-effective exchange rates, hindering businesses engaged in cross-border trade.

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Therefore the founders wanted to create a digital platform that simplifies international payments, offers competitive exchange rates, and reduces transaction fees.

This started with Max Li, who struggled with the high costs of importing supplies for his café business. Sharing his frustrations with Jack Zhang, they envisioned a solution that would benefit not only themselves but millions of businesses worldwide.

Unique Selling Point:

• Reinventing Cross-Border Payments: Started with offering interbank exchange rates with minimal margins, saving businesses up to 90% compared to traditional banks.
• Comprehensive Financial Platform: Provides virtual global accounts in over 11 currencies. Also Offers robust APIs for seamless integration with existing business systems, enabling automation and customisation.

Ticket To Fame

1. Business Without Borders Campaign: Launched multi-channel campaigns featuring success stories of clients expanding internationally.
2. Partnership with Visa: Collaborated with Visa to launch Airwallex Borderless Cards, This Enhanced credibility and expanded customer base, it also provided customers with more flexible spending options.
3. Ecommerce Integration: Integrated with platforms like Shopify, Stripe, and PayPal, creating co-branded content and webinars to educate users on optimising international payments.
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Did you know that Airwallex once got an acquisition offer of $1.15 billion offer from Stripe in 2018?, but rejected it at the last moment!

Financial Milestones:

• Has established presence in over 20 locations, including London, Hong Kong, Shanghai, San Francisco, and Bangalore.
• In 2017, crossed the benchmark of processing transactions worth $1 billion annually.
• Last funding round was $100 Million in 2022, taking valuation to 5.5 Billion.
• They are targeting a fresh round of $200 Million at $6 Billion Valuation.
• Airwallex processes $100 Billion in annual transactions volume.
• This is 73% YoY jump for the company in terms of just transaction volume.

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Did you know that before Airwallex, Max Li was running a cafe in which Zhang was an investor?

5 Strategies Airwallex Used to Scale to $3.1 Billion Business

1. Figure out Right Problem: Addressing genuine pain points in the market creates value.
   ​What did Airwallex do right?
   ​How Airwallex did it: Identified the high cost and inefficiency in cross-border payments for businesses.
2. Leverage Strategic Partnerships: Collaborations can accelerate growth and enhance product, especially for a new comer in this Industry.
   ​How Airwallex did it: Partnered with Visa and integrated with major e-commerce platforms, thereby allowing Platform discovery and understanding of user behaviour.
3. Strategic Partnerships: Startups should Design products with a global audience in mind maximizes potentials, Think globally and plan for international expansion from the beginning.
   ​How Airwallex did it: Established international operations early and tailored services to local markets.
4. Technology Innovation: Robust technology infrastructure and regulatory compliance builds trust.
   ​How Airwallex did it: Airwallex built a proprietary financial infrastructure and obtained necessary licenses.
5. Customer-Centric Approach: The brand Understood that meeting customer needs , drives adoption and loyalty. This also keeps the customer at the core of your business decisions and innovations.
   ​How Airwallex did it: Airwallex started offering tailored solutions and dedicated support, leading to high customer satisfaction.