Tencent-backed Airwallex acquires China licence via M&A deal

PAYMENT platform startup Airwallex has acquired an online payment business licence in China after completing a deal for information services and logistics firm Guangzhou Shang Wu Tong Network Technology.

The transaction has cleared all regulatory hurdles with Chinese authorities, according to a statement on Tuesday (Mar 6). Shang Wu Tong has a licence for online payment services in the world’s second largest economy, the statement shows.

The deal allows Airwallex to become a third-party payment provider in China and boost access to the local market. The latest approval adds to Airwallex’s existing licences in markets including Australia and New Zealand, Europe, Hong Kong, Singapore, the UK and the US.

“To better address the pain points encountered in cross-border transactions between China and the rest of the world, our team will work towards integrating our platform,” Kai Wu, the firm’s chief revenue officer and general manager of Asia Pacific, said in the statement.

Airwallex in December raised US$100 million in an extension of its series E funding round while keeping its previous valuation at US$5.5 billion amid market volatility. Australian industry superannuation fund HostPlus and a North American pension fund participated in the extension along with existing investors including Tencent Holdings.

Founded in 2015 by the owners of a coffee shop in Melbourne, Australia, Airwallex provides services including cross-border end-to-end payments and collection solutions for customers. It has more than 1,000 employees in 19 offices, according to its website. BLOOMBERG