Corporate spend management firm Brex raised $425m in Series D funding, doubling its private valuation from a year ago at more than $7.4 bn.
Along with Tiger Global in the lead, new investors TCV, GIC, Baillie Gifford, Madrone Capital Partners, Durable Capital Partners, Valiant Capital Management and Base10, as well as existing investors, including Y Combinator, Ribbit Capital, DST Global, Greenoaks Capital, Lone Pine Capital and IVP too participated in the round.
The latest round, which brought it closer to the decacorn status, comes a year after its $150m Series C which valued the company at just over $3bn.
The San Francisco-based company was founded in 2017 by Henrique Dubugras and Pedro Franceschi with the aim to provide a corporate card for venture-backed businesses. In the first quarter of 2021, the company said it grew total customers by 80% with total monthly customer additions increasing by five times.
Brex is now expanding beyond its core corporate credit card product with the launch of a new all-in-one finance platform dubbed Brex Premium. The solution brings credit cards, business cash accounts and new spend management and bill pay software together in a single dashboard. This latest offering addresses the needs of its growing customer base of SMEs, it said.
Commenting on the massive round, Dubugras said, “Our investors – new and existing – believe in our team, our business model, our product vision, our customers and the future of Brex. We are delighted to have them on board for the next phase of our journey.”
Echoing a similar sentiment, Brex CTO Cosmin Nicolaescu added, “Growing and maintaining a business should not depend on how good a small business owner is at managing their finances. Our all-in-one finance solution gives business owners peace of mind and the time back to do more of what they love and remember why they started their business.”
Earlier this year, the firm submitted an application to establish Brex Bank, which would let it offer FDIC insured deposit products to SMBs without the need to rely on an intermediary bank.
This indeed proves that the spend management sector is strong as only a few weeks ago, Brex’s rival Ramp secured $115m which gave it the unicorn status.
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