It enables businesses to issue and pay invoices in their preferred currency at the mid-market foreign exchange rate, avoiding inflated bank margins and minimising currency fluctuation risks
Australia- and Honk Kong-based fintech startup Airwallex has secured US$3 million in pre-Series A round of funding led by Shanghai-based VC firm Gobi Partners.
China’s Gravity VC, along with Huashan Capital One and Billy Tam (CEO of Easylink Payments, the company behind Chinese payment powerhouse PAYECO), also participated in the round.
Airwallex plans to use the funds to develop its proprietary technology stack and roll out key features over the next few months, including a multi-currency digital wallet and APIs for e-commerce platforms.
Founded in 2015, Airwallex offers integrated solutions for business and personal cross-border transactions. It facilitates international money transfers through a combination of payment collection, foreign exchange, remittance and security settlement.
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Currently in beta stage, the Airwallex platform enables businesses to issue and pay invoices in their preferred currency at the mid-market foreign exchange rate, avoiding inflated bank margins and minimising currency fluctuation risks.
Airwallex Co-founder and CEO Jack Zhang said the growth in international e-commerce, travel and import/export trade meant there is huge market potential for their simple and secure all-in-one solution.
“Current cross-border payment processes are expensive, clunky and time-consuming. It can take days for the money to reach its destination, and the transfer and foreign exchange fees are excessive and often prohibitive to SMEs. Airwalllex breaks down these barriers to empower businesses to build stronger global trading partnerships and truly tackle the world stage,” he added.
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Michael Zhu, Managing Partner at Gobi Partners, said: “With cross-border consumption booming in Asia, demand for foreign exchange is higher than ever. Meanwhile, traditional forex channels remain slow, expensive and inefficient. There is a real need for innovation in the sector and Airwallex has created the perfect solution.”
Founded in 2002, Gobi Partners is a leading venture capital firm with an investment focus on early-stage, digital media, IT and TMT companies.
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