Brex, the credit card built for scaling business announced it closed a $100m (£78.5m) investment round led by Kleiner Perkins Digital Growth Fund, with participation from all existing major investors including Y Combinator Continuity, Ribbit Capital, DST Global, Greenoaks Capital and IVP.
The financing will be used to bolster Brex’s product, which is the only corporate payments solution that can be customized for specific business verticals. With this fresh capital, Brex will be both expanding the corporate spend management features and rewards offerings, while also expanding its services to a broader customer audience. By offering a distinct combination of payment terms, underwriting, rewards offerings and product features to specific customer segments within the business landscape, Brex is challenging the financial services industry status quo.
“At Brex, we build corporate payment technology to accelerate entrepreneurs and scaling companies. We recognize that each business is unique and therefore tailor our product to meet their specific circumstances,” said Henrique Dubugras, co-founder and co-CEO of Brex. “With this new funding, we can deliver relevant and unique financial products to an increasingly broad customer base.”
Since the company’s launch one year ago, Brex has expanded beyond startups to focus on larger tech companies and eCommerce businesses. In February, Brex launched a suite of products specifically designed for eCommerce businesses. By creating a customized solution that solves many of the industry’s pain points, Brex has brought major online consumer retail brands such as Malin + Goetz, Outdoor Voices and Boxed.com on to the platform. With a combination of 60-day payment terms, interest-free financing and tailored rewards, the Brex eCommerce value proposition have been rapidly adopted in a market ignored by financial services incumbents.
“We are investing behind Brex’s fundamental vision – that businesses want customized payment solutions tailored to their specific needs,” said Mood Rowghani, General Partner at Kleiner Perkins Digital Growth Fund and co-founder of Bond. “It is this vision that will continue to propel Brex’s extraordinary growth.”
To date, Brex has raised $315 million in equity financing from Y Combinator Continuity, Kleiner Perkins Digital Growth Fund, Ribbit Capital, Greenoaks Capital, DST Global, IVP, Peter Thiel and Max Levchin. In April 2019, Brex raised $100 million of debt capital with Barclays in the form of a warehouse line of credit.