ANZ’s venture capital fund, 1835i, has divested a significant asset by selling its shares in the payment processing company Airwallex for $44 million (approximately $67 million). The transaction involved the company’s founders and executives, marking a pivotal moment for both the bank and the rapidly growing fintech.
This sale comes as part of a broader review of ANZ’s operations. 1835i, originally established in 2018 under former ANZ chief executive Shayne Elliott, has been instrumental in the bank’s strategy to counteract threats posed by fintech innovators. The fund, which was rebranded from ANZi Ventures, had initially invested in Airwallex at a valuation of $1.8 billion and participated in funding rounds in 2021 and 2022.
Details of the Sale and Future Outlook
With the latest transaction, 1835i has decreased its stake in Airwallex to approximately 1 percent. The fintech was most recently valued at $6.2 billion. Airwallex confirmed that its leadership team procured a total of $70 million in shares from existing investors, which included the $44 million stake sold by 1835i.
According to Justin Greenstein, chief executive of 1835i, the decision to sell was influenced by Airwallex’s remarkable growth and its new strategic focus. He noted, “Airwallex’s significant growth and their current strategic focus changed the rationale for the basis of our investment, which was first made in 2020.” Greenstein declined to provide further comments on the sale specifics.
The sale aligns with a strategic review led by current ANZ chief executive Nuno Mato, which will be presented to investors next month. Airwallex is the most notable company in 1835i‘s portfolio, which also comprises businesses such as online mortgage broker Lendi and digital receipts firm Slyp.
Airwallex’s Growth and Investor Confidence
Despite the sale, Airwallex remains a key player in the fintech landscape, attracting investment from notable firms including venture capitalists Square Peg, Airtree, and Blackbird, alongside tech giant Tencent and superannuation fund Hostplus.
The company’s co-founder and chief executive, Jack Zhang, expressed confidence in the firm’s future trajectory, stating, “The leadership team at Airwallex strongly believes that the company has an incredibly strong growth trajectory ahead of it and this purchase is a show of confidence from all of us.”
While the sale of shares from 1835i was not part of Airwallex’s broader capital raising initiative, which included $150 million in secondary share transfers, the implications of this transaction could redefine the landscape for both the venture fund and the fintech industry.
As 1835i reassesses its investment strategy, the focus will likely shift towards opportunities that align more closely with the bank’s evolving objectives and the competitive fintech environment.
