Global payment platform Visa is reportedly considering investing in a new Melbourne fintech Airwallex for a raise of up to A$290 million in an additional Series E round.
Bloomberg, citing anonymous sources who are “familiar with the matter,” reports: that the deal with Airwallex could be closed, maintaining the A$7.6 billion (US$5.5 billion) valuation it held last November, when it raised A$137 million in a ” Series E1″ that doubled the company’s valuation in just six months.
Holding on to its valuation in a year when the dark clouds of downside rounds, especially in the fintech sector, are looming is arguably the most impressive achievement for Airwallex as the deal crosses the line.
Earlier this month, Sweden’s BNPL Klarna saw its valuation drop 85% in just 12 months from its valuation of $45.6 billion in June 2021 when it raised $639 million. The world’s second most valuable fintech raised $800 million in a round that valued the company at $6.7 billion ($9.74 billion), just $2 billion more than Airwallex.
Meanwhile, publicly traded fintechs like Zip have seen the value of their shares drop by as much as 90% in the past year.
News that Airwallex was on the hunt for a third Series E round first emerged in April as it reportedly considered going public. Last year, Airwallex raised A$275 million in a Series E, and two months later, Airwallex topped it up with the additional A$137 million. That followed the $130 million Series D in 2020.
Airwallex has so far raised more than A$1.1 billion in the seven years since its founding.
Bloomberg reports: that the company is now looking to raise up to US$150 million (A$290 million) for the extension and that no deal with Visa has been reached. Neither company would comment on the report.
The fintech nearly doubled its workforce in 2021 and now employs nearly 1,000 employees in more than 20 locations worldwide. Revenue grew nearly 150% in the first half of 2021 and processed more than $20 billion, quadrupling the customer base in size.
The company opened in the US late last year and saw the Singaporean entity grant a Major Payment Institution license to expand its offering of financial services.