Airwallex Captures 50% of Australia’s $1.73B Fintech Funding in FY26
Synopsis
Australian fintech funding doubled to $1.73 billion in FY26, but Airwallex alone made up more than half of all capital raised.
Key Highlights
- Australian fintech funding topped $1.73 billion in FY26, more than double the FY25 figure, most of which went to a single company, Airwallex.
- Airwallex’s two raises represented 56% of total fintech funding raised that year.
- Fintech deals fell to their lowest level in 7 Years to just 54.
- AI-first fintechs only received 15% of funding in the sector, down from 25% year on year.
One Company Drives Funding Surge
Funding into Australian fintech more than doubled in the 2026 financial year, although most of this was limited to a single company. A new report from Dom Pym’s fintech VC fund Triple Bubble and Cut Through Venture finds the sector pulled $1.73 billion in 53 disclosed rounds, up 137% on FY25’s $730 million. However, the value of these deals was down year-on-year for the first time since 2016 as a lower number of deals (54) were reached, also the lowest annual figure recorded since Beauhurst has been compiling this data series over seven years.
Fintech still represented 23% of the total local startup capital raised over the period. The sector has already seen under 564 deals valued at over $12 billion since FY20.
AI Fintech Funding Declines
While AI is super hot right now, accounting for approximately 15% of the entire fintech funding in FY26 vs. 25% in FY25, investor interest for this category cooled substantially. Nevertheless, AI companies represented 47% of all fintech deals for early-stage rounds.
The report found 20% of fintech deals were ineligible for a certain type of local investment structure in FY26, compared to only 3% for their non-fintech deals, a divide that may prove particularly troublesome for regulated and capital-heavy fintech businesses.
Airwallex’s Dominant Role
The largest contributor to the funding total for the year was Airwallex. In Dec 2025, the firm secured $498 million in a Series G round at an $8 billion valuation, then raised $460 million in Series H funds 8 months later at a valuation bias of 37%. Combined, these two rounds alone comprised 56% of total Australian fintech funding for the year, and at least half of all capital provided from foreign investors.
Excluding Airwallex, the rest of the sector raised over $772 million, about a 5% increase. Funding was still top-heavy even after Airwallex, with the 10 largest deals in fintech making up 91% of all capital compared to just 48% for the wider local startup market. These three deals represented 62% of total fintech funding.
Banking and Wealth Lead Categories
The banking and business-to-business financial infrastructure funding category, attracted $1.1 billion across only four deals. Wealth & investment took second place with $305.7 million in 10 deals, and payments & acceptance third with $170.3 million across six deals.
Funding for later-stage companies held strong, however, only six Series B or later rounds were made during the quarter, down from a peak of 29 in FY22. 74% of the $1.3 billion investment at Series B and beyond came from Airwallex.
Early-Stage Funding Also Slows
It was a tale of two halves when it came to later-stage fintech companies. Fintechs raised $93 million in 17 Seed rounds, which marked a decline of 43% in median Seed round sizes versus Q2 FY23 at just $2.3 million, the second-lowest level since FY20. In contrast, median angel and pre-Seed rounds were bigger at $2.7 million than Seed (with only eight deals totalling $19.8 million).
International investors were at the heart of the market. There was at least one international investor in 55% of fintech deals, and these comprised 93% of all capital raised for the year.
Source: Startup Daily
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
