Airwallex Deepens Roots in Tel Aviv with $320 Million Series H

Airwallex Deepens Roots in Tel Aviv with $320 Million Series H

In recent weeks, Australian fintech unicorn Airwallex has strengthened its presence in Tel Aviv, signaling deeper ties to Israel's vibrant tech ecosystem after closing a $320 million Series H funding round that pushed its valuation to $11 billion. The move comes as global fintech firms increasingly look to Israel's innovation clusters for talent and technology solutions that support cross-border operations. Or Liban, who heads the Tel Aviv center and oversees operations across Israel, the Middle East, Benelux, and the Nordic countries, emphasized the company's commitment to scaling locally. In a sector where Tel Aviv has long served as the beating heart of Israel's innovation economy, this move highlights how global players are integrating into the Startup Nation's dense network of talent and technology.

Funding Round Reflects Surging Demand for Cross-Border Payments

The Series H round was led by New York-based Addition, with participation from Baillie Gifford, Hummingbird, QED Investors, T. Rowe Price, and Amex Ventures. The $11 billion valuation marks a 38 percent increase from the $8 billion valuation Airwallex commanded in December 2025 after a $330 million raise also led by Addition. Airwallex reported annualized revenue climbing 74 percent to $1.3 billion, while transaction volumes more than doubled year-over-year. Over 90 percent of revenue now comes from multi-product customers, underscoring the stickiness of its platform. For Israel's tech ecosystem, which relies heavily on export-oriented fintech solutions, such metrics illustrate the broader opportunity for local engineers and product teams to contribute to platforms serving clients like McLaren, Qantas, Canva, and Shein. The capital infusion may also delay an eventual IPO, with CEO Jack Zhang telling the Australian Financial Review that investment in AI development has made margins "too volatile to go public" in the near term.

Tel Aviv Center Positions Israel Within Global Fintech Supply Chains

Airwallex holds more than 85 licenses spanning North America, Europe, the Middle East, and Asia-Pacific, allowing it to navigate complex regulatory environments. Or Liban's expanded mandate in Tel Aviv places the city at the intersection of these corridors. Daily life in Tel Aviv's tech corridors, from Rothschild Boulevard to the Sarona district, revolves around precisely this kind of integration. Israeli startups routinely supply compliance tools, risk engines, and cybersecurity layers that global firms need when moving money across borders. By growing its local team, Airwallex gains access to engineers familiar with both the security demands of high-stakes payments and the operational realities of operating near conflict zones. Local firms like Rapyd and Payoneer have built similar cross-border payment infrastructure from Israel, and Airwallex's expansion reinforces Tel Aviv as a global fintech nerve center.

New AI Products Target Corporate and Consumer Finance

Alongside the funding news, Airwallex unveiled two AI-native offerings that signal where the fintech sector is heading. T:0 is an AI-native platform designed to automate corporate finance functions including bookkeeping, tax, compliance, and reporting — currently in private beta with a wider release expected in the coming weeks. Airi is an agentic consumer wallet that will eventually support delegated agent payments, spending limits, permission controls, and multi-currency balances. These tools arrive at a moment when Israeli AI talent is in high demand worldwide. Many graduates from Tel Aviv University and the Technion already work on similar agentic systems for defense and enterprise applications. The addition of these products could create natural collaboration points with Israeli machine-learning startups clustered in Herzliya and Jerusalem, where data-privacy and adversarial-security expertise are particularly strong. Such partnerships would embed Israeli know-how deeper into Airwallex's stack while giving local firms exposure to the company's 27 global offices.

China Ties Prompt Scrutiny Amid Heightened Security Awareness

Airwallex has faced questions over its early backing from Tencent and HongShan Capital, formerly known as Sequoia China. In December, prominent Silicon Valley investor Keith Rabois — a board member of rival U.S. fintech Ramp — accused Airwallex of being a "Chinese backdoor into sensitive American data." The company has categorically rejected those allegations. CEO Jack Zhang described them as "wild and totally unfounded conspiracy theories," stating that American customers' data is stored in the U.S. and inaccessible to staff based in China or Hong Kong. In Israel, where national security considerations shape investment screening and export controls, these links receive careful attention. Policymakers in Jerusalem routinely weigh the benefits of foreign capital against risks to critical infrastructure and sensitive data. Airwallex's decision to expand in Tel Aviv occurs against a backdrop of ongoing debates about supply-chain resilience. At the same time, the company's multi-jurisdictional licensing and diversified investor base — including major American institutions like T. Rowe Price and Washington University in St. Louis — may help mitigate some of those concerns.

Economic Ripple Effects Reach Beyond Recruitment Numbers

Expanding hiring in Tel Aviv injects fresh demand into an already competitive labor market. Salaries in Israeli fintech have climbed steadily as global firms compete for the same pool of talent that powers companies like Rapyd and Payoneer. Israeli market data shows fintech employment contributing to broader growth in high-skill sectors, with average salaries supporting housing markets and consumer spending in central Israel. Beyond direct employment, Airwallex's presence supports ancillary services: cloud providers in Beersheba, legal advisors in Jerusalem, and marketing agencies in Tel Aviv all stand to benefit. The move also reinforces Israel's reputation as a place where international fintechs can test and refine products under rigorous security standards — a certification of sorts before rolling solutions out to clients in Europe, Asia, and North America.

Outlook for Further Integration with Israeli Innovation Clusters

Or Liban's oversight of multiple regions from Tel Aviv suggests the company views Israel as more than a talent source. It positions the city as a coordination hub for regulatory navigation and product localization across time zones that overlap with key markets. As Airwallex continues to grow its multi-product revenue base, Israeli teams could contribute specialized modules for sanctions screening, real-time fraud detection, and cross-border compliance that draw on the country's long experience with complex threat environments. Whether through direct hiring or ecosystem partnerships, the expansion underscores how Tel Aviv's innovation scene remains intertwined with global capital flows even as security considerations shape the terms of engagement.

What This Means for Israel's Startup Ecosystem

Airwallex's expansion reflects broader trends reshaping Israel's startup ecosystem, where fintech continues to attract global capital despite regional challenges. Connections to firms like Payoneer and Rapyd illustrate a maturing network that links early-stage ventures to established players. The influx of international funding and talent reinforces Israel's reputation for rapid iteration under security constraints, influencing everything from accelerator programs to government incentives at the Israel Innovation Authority. As cross-border payments grow in importance — with annualized global fintech revenue projected to exceed $400 billion by 2030 — local innovators stand to benefit from knowledge transfer while navigating the same geopolitical realities that define daily operations in the sector. This integration ultimately strengthens economic resilience and positions Israeli technology at the center of global financial flows, even as debates over data sovereignty and foreign investment continue to shape the country's approach.

By Hannah Berg, Staff Writer