Brex has raised $300 million in a Series D-2 round that has increased its valuation to $12.3 billion.
The first report of Brex raising capital and achieving decacorn status was from techcrunch in October. The three-year-old San Francisco startup has raised a total of $1.2 billion.
Brex started out providing credit cards for startups and small businesses. The aim of the model is to serve as a one-stop finance shop for these companies. Brex Premium is a service that costs $49 per month and combines credit cards, business cash accounts and new spend management and bill pay software. The company is focused on the corporate card product, banking products and expense management products. It aims to serve as a financial operating system for its customers.
Henrique Dubugras, co-CEO and co-founder, said that the company saw a more than doubling of revenue last year. The Series D-2 round was made up of existing investors.
Dubugras said that they didn't open up to new ones because they had so many new investors with deep pockets. They were comfortable that we had hit our targets and that gave us some credibility.
Brex hired away an executive from Meta: Karandeep Anand, in conjunction with the funding announcement. Meta has named Anand its chief product officer after he led the company's business products group, which served more than 200 million businesses globally. Prior to that, he was at Microsoft for 15 years, where he led the product management strategy for Microsoft'sAzure cloud and developer platform efforts. A good portion of Brex's new capital will be directed by the executive.
According to Dubugras, Kannadeep is an engineer by background and he is also a business and customer oriented person. He is a unique hire and that is important for Brex. Our software and card touches most of the employees in a company even though the CFO decides to buy it. He is going to help us provide a consumer-like experience.
Brex was described as a market disruptor by Anand.
He said in a written statement that the opportunity to create economic opportunity for millions of people and businesses globally through innovation in financial products is incredibly exciting. I am grateful for the opportunity to create products that will help our customers grow their businesses as the opportunity for Brex is expansive.
Brex still serves e-commerce companies that might be smaller but have higher growth. Brex is adapting to serve larger businesses with different financial needs as they grow, as it has earlier customers who have grown and matured. This is where it appears that Anand will be able to offer the best value.
Brex is the image.
By the day, the landscape for startups clamoring to meet companies' financial needs seems to increase. In August of last year, one of Brex's competitors, Ramp, announced it had raised $300 million in a Series C round of funding that valued the company at $3.9 billion. Brex seems to be encroaching into Ramp's territory with its move to serve larger and more established companies.
Brex has been able to build a card that meets the needs of modern businesses, according to the founder and managing partner of Greenoaks. While that alone was compelling enough to attract his firm's attention, Greenoaks also saw the broader potential for a "truly extensible platform that could solve a universal set of problems", including providing better controls over employee spend, "painless" expense reporting and rewards tailored to a company
The result is a differentiated experience that shows up in attractive customer loyalty and some of the best growth metrics we have ever seen. Brex's team builds excellent products fast, with a profound vision for the future of business banking, and we've been consistently impressed with them.
Mehta said that Brex has become the "cognitive referent" for modern business banking. He boasted of features such as instant onboarding and virtual card provision, as well as no account fees, compelling rewards, and technology that is built to integrate into its customers' financial workflows.
Few companies can effectively serve a variety of businesses, from day one startup to sophisticated enterprises with complex needs.
Henrique Dubugras and Pedro Franceschi are co-CEOs.
The fact that Brex has built all its technology from scratch is a big difference for the company.
He said that they don't use third-party legacy vendors like banks do, and they are specialized on high-growth businesses. A lot of competitors have single line products, but with us, you can do a lot of things.
Brex was valued at $7.4 billion in April after raising a $425 million Series D led by Tiger Global Management.
At the time of its last raise, the company said that it had thousands of new tech and non-tech customers every month. In the first quarter of the year, Brex said that it grew its total customer figure by 80%.
The company expects to have 1,000 employees by the end of the month. It is not profitable because it is still focused on growth.
Brex just signed a term sheet for $300 million.
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