A company that provides credit cards for startups has raised $100 million in debt capital to continue its growth, according to a news release from Brex and Barclays Investment Bank. The capital will be a warehouse line of credit backed by Brex’s corporate charge card receivables.
“With the financial support from Barclays, Brex will continue to scale its corporate offerings to different business verticals and evolve to meet the needs of its growing clients,” the company said.
Brex has continued to expand and recently enhanced its financial and capital market infrastructure, which involved software upgrades and hires from companies like PwC, SoFi and Kraft Heinz.
“We are innovating at a rapid pace, and our partnership with Barclays allows us to continue to support our growth financially,” said Henrique Dubugras, co-founder and CEO of Brex. “We will continue to expand the Brex platform by harmonizing our impactful technology with financial expertise and regulatory compliance.”
Brex offers startups a credit card without personal guarantees that has higher credit limits and instant approvals, as well as a larger amount of transparency. Powered by the Mastercard network, the card offers travel programs and personalized rewards designed to meet the needs of startups.
“A financing of this size and structure is a significant milestone for any company, and reflects a meaningful maturity level of Brex's balance sheet, management and business model. Given the company’s existing customer momentum and new capital position, I anticipate even more successes as Brex tackles some exciting new customer verticals,” said Frank D. Yeary, the former global head of M&A at Citigroup and vice chancellor of the University of California, Berkeley.
Martin Attea, the head of securitized products origination at Barclays, said the collaboration with Brex is part of the company’s overall goals. “Partnering with high-growth FinTech companies like Brex is core to our strategy,” he said. “We are excited to see the continued growth at Brex and look forward to assisting them in offering high-quality and cutting-edge solutions to their rapidly expanding customer base.”