Business credit card startup Brex has confirmed earlier reports of its pursuit of unicorn status. A press release issued Friday (October 5) said Brex closed a $125 million Series C funding round, valuing the company at $1.1 billion just a little over three months after launch.
The funding, led by Greenoaks Capital, DST Global and IVP, will be used to enhance its existing feature set, with plans to launch a rewards program in the coming weeks. Clients who sign up for Brex are now able to start accumulating points as part of the company’s beta rewards program.
In a statement, co-founder Henrique Dubugras said the investment will support its growth trajectory.
Brex, which was reported by the Wall Street Journal last month to be in the midst of closing an investment that would secure its unicorn status, differentiates itself from other commercial card companies by not requiring clients to hold personal liability for their company spend on the card.
In an interview with the publication this week, Dubugras said the company is on its way to “disrupting American Express.”
“If the company grows as much as we expect it to grow, it’s a $100 billion business,” he said.
The company is first targeting tech startups, which have trouble getting banked and accessing capital — even startups that raise a significant amount of money.
“If you have raised millions of dollars from credible investors, why is it that you can’t get a credit card instantly and why aren’t the credit limits more flexible?” said Y Combinator Continuity Fund Partner Anu Hariharan, also a member of the Brex board, in an interview with the WSJ.
Reports noted, though, that there are “limitations” to Brex’s commercial card offering. Businesses are not allowed to carry a balance beyond 30 days, for example.