Brex raises $100m to reach $2.6bn valuation
Y Combinator graduate Brex, provider of a corporate credit card for start-ups, has announced another $100 million in funding through a Series C extension round led by Kleiner Perkins Digital Growth Fund.
The extension also has participation from existing investors, including Y Combinator Continuity, GreenOaks Capital, IVP, Ribbit Capital, and DST Global.
This takes Brex’s total equity funding to $315 million, with a valuation of $2.6 billion.
The firm launched its product last June with $57 million in funding from investors such as PayPal’s founders and Y Combinator. It went on to raise a $125 million Series C round in October, at a valuation of $1.1 billion, and made its first acquisition.
Brex also raised an additional $100 million debt round a couple of months back with Barclays.
The start-up acts as an underwriter and sets credit limits based on factors such as who the start-up’s investors are, its cash balance and spending patterns – not on credit history. Start-ups don’t pay any fees for the first five cards, after which they pay $5 per month for each card. Brex also makes money from transaction fees.
Brex offers allows users to capture receipts with a smartphone camera and match them to a statement, and it directly integrates with accounting tools, including QuickBook, Expensify, and Xero.
Brex was cofounded by Brazilians Henrique Dubugras and Pedro Franceschi, who also created online payments processor Pagar.me, which they sold for an undisclosed sum in 2016.
