Brex Valuation Jumps to $7.4 Billion With Tiger-Led Investment
(Bloomberg) -- Brex Inc., the San Francisco startup looking to disrupt the corporate card market, raised $425 million in a funding round led by Tiger Global Management.
The latest round -- which drew investment from firms including TCV and Ribbit Capital -- values the four-year-old startup at more than $7.4 billion, Brex said Monday in a statement.
When Brex started, it was focused on providing corporate cards to other startups and venture capital-backed companies. That meant the firm was targeting an area long dominated by the likes of American Express Co. or JPMorgan Chase & Co.
The company has since been building out other products, including business cash accounts and bill pay software -- moves that have allowed it to target more traditional small-and medium-sized businesses, which now account for 45% of its customers. In the first three months of the year, Brex has seen total customers climb by 80%.
“Until very recently, we only served technology and e-commerce companies, now we’re serving any business,” said Henrique Dubugras, the company’s co-chief executive officer. “We have all types of businesses now signing up for Brex. Not only small businesses but mid-size businesses as well.”
Brex is one of many startups to benefit from venture capitalists’ interest in the financial technology industry. The firm’s latest fundraising comes after the payments company Stripe raised a $600 million funding round at a $95 billion valuation.
“We are excited to partner with them as they continue growing rapidly, innovating their product offerings, expanding their customer base and leading an industry that is dominated by incumbents,” Scott Shleifer, a partner at Tiger Global, said in the statement.
©2021 Bloomberg L.P.