San Francisco-based startup Brex is set to close on new funding at a valuation of more than $2 billion.
Brex — which provides corporate credit cards to tech companies, startups and their employees — previously raised money at a $1.1 billion valuation earlier this year. Sources told Bloomberg that Kleiner Perkins is expected to lead this latest round, represented by Mood Rowghani, an investor in Stripe, with additional participants including existing investors Greenoaks Capital, DST Global and IVP.
The anonymous sources said that talks are ongoing, and the deal could change.
Started in 2017 by founders of Brazilian payments processor Pagar.me, Brex’s investors include Y Combinator Continuity, Ribbit Capital, Greenoaks Capital, DST Global, Peter Thiel and Max Levchin. Brex also participated in the Y Combinator Winter 2017 batch.
Instead of focusing on credit history, Brex uses a startup’s funding data and bank account information to issue cards to companies and employees, with Brex closely monitoring the accounts. In fact, since the startup business is so volatile, Brex Founder Henrique Dubugras said in April that the company has already shut down the cards of hundreds of businesses because they were no longer meeting cash requirements.
In February, Brex announced that it is partnering with Mastercard to issue the World Elite Mastercard for Business, offering an enhanced rewards structure and expanded suite of travel benefits.
"We’ve spent time building our card-issuing technology from the ground up, giving us the flexibility to partner with a number of financial platforms. Today, we add Mastercard to that list,” said Dubugras at the time. “We are focused on continuously improving the Brex platform to be the best corporate card for all businesses.”
The program includes benefits, such as access to a luxury hotel and resort program, emergency travel assistance, or travel and rental car insurance. In addition, cardholders will receive improved anti-fraud benefits, including purchase protection and ID theft protection.