Australian fintech firm Airwallex has announced that it has successfully acquired Chinese online payment services firm Guangzhou Shang Wu Tong Network Technology Co.
The acquisition is part of Airwallex’s expansion plans into Asia.
Airwallex Secures China Online Payments License
In a March 10 press release, the Australian fintech firm confirmed the deal, with Airwallex anticipating obtaining an online payment business license in China.
Founded in 2015, Airwallex is a multinational financial technology firm based in Melbourne, Australia. The firm is backed by notable investors such as Grok Capital Ventures and Tencent Holdings capital venture.
Other capital ventures that have already invested in Airwallex include San Francisco-based Greenoaks Capital, Singapore’s Hillhouse Capital Group, Sequoia Capital China, and Horizons Ventures, the famous capital venture founded by the legendary Hong Kong tycoon Li Ka-Shing.
Under the recent acquisition, Airwallex plans to expand its service offering in the Asian region – interestingly, the new deal will allow Airwallex to evade some regulatory approvals required in China.
Airwallex Targets The Asian Market
Even though the Australian fintech firm has acquired 100% shares of Guangzhou Shang Wu Tong Network Technology Company, it will operate as a third-party payment provider in China.
While commenting about the acquisition deal, Kai Wu, chief revenue officer and GM of the Asia-Pacific, remarked:
“Looking ahead, we can now significantly enhance our capabilities to empower entrepreneurs and modern businesses to leverage technology and grow without borders.”
Airwallex anticipates offering financial services, including allowing businesses to accept online payments, conducting foreign exchange transactions, managing cashflows, making domestic and international fund transfers.
It will also issue virtual payment cards to staff and suppliers.
The Tencent-backed company has licenses in major markets such as Australia, the European Union, Hong Kong, New Zealand, Singapore, the United Kingdom, and the United States.
Airwallex, which raised $100 million in a funding round last year, hopes to leverage the Asian market to expand its valuation from the current $5.5 billion.
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