Stripe and Airwallex shift from acquisition talks to competition
Original: Once close enough for an acquisition, Stripe and Airwallex are now going after each other
Why This Matters
Demonstrates how rejecting acquisition offers can lead to building major fintech competitors
Airwallex CEO Jack Zhang rejected Stripe's $1.2 billion acquisition offer in 2018 when the company had only $2 million in annual revenue. The Australian fintech now reports $1.3 billion in annualized revenue with 85% year-over-year growth, processing nearly $300 billion in transaction volume.
In 2018, Sequoia's Michael Moritz urged Airwallex founder Jack Zhang to accept Stripe's $1.2 billion acquisition offer, representing a 600x revenue multiple when Airwallex had just $2 million in annual revenue. Zhang initially agreed but changed his mind after returning to Melbourne, motivated by his vision to build financial infrastructure enabling global business operations. Two of his three co-founders opposed the deal. Zhang, who moved from China to Australia at 15 and worked multiple jobs through university, believed the company's potential remained unfulfilled. Today, Airwallex claims over $1.3 billion in annualized revenue with 85% year-over-year growth, processing nearly $300 billion in transaction volume annually, validating Zhang's decision to remain independent and compete directly with Stripe.