I think it does. It starts off about as basic like xterm (i.e. using "fixed" as the font), so it's really low on resources. It is missing a bunch of features out of the box (Ctrl+Shift+V to paste, quick adjustment of font size at runtime, URL clicking, drag-and-drop, tabs, ...), but it has support for plugins (written in Perl), which is its other major advantage (all of the missing features I've mentioned have been implemented as plugins).

To quickly try it with a larger font size, you can do urxvt -fn 'xft:Dejavu Sans Mono:size=10' (but it's usually configured through X resources, see the urxvt man page)