Silicon Valley-based business growth firm Brex raised $425 million in a Series D investment round led by Tiger Global that gives the startup a valuation topping $7.4 billion, the company announced in a Monday (April 26) press release.
Additional participation in the round included new investors TCV, GIC, Baillie Gifford, Madrone Capital Partners, Durable Capital Partners LP, Valiant Capital Management and Base10. Previous big backers also participated, including Y Combinator Continuity, Ribbit Capital, DST Global, Greenoaks Capital, Lone Pine Capital and IVP.
Henrique Dubugras, Brex co-founder and co-CEO, said the new infusion of capital “will fuel our growth” as the startup moves to further expand its “all-in-one financial solution” for businesses of all sizes.
Brex launched the all-in-one solution, which provides small and medium sized businesses (SMBs) with a single dashboard to view their credit card and cash accounts, as well as to access spend management and bill pay software, on Monday in a separate press release.
The firm also offers a Premium version, with which clients can create and manage spend policies, allowing them to monitor spend requests and approvals across the business. Brex Cash customers can also schedule and pay bills with Premium.
“Growing and maintaining a business should not depend on how good a small business owner is at managing their finances,” said Cosmin Nicolaescu, Brex CTO, in the press release.
The company launched in 2017 with a corporate card for startups backed by venture capital. Brex has since grown to offer a single platform for financial management aimed at helping small and medium-sized businesses (SMBs), as well as larger organizations, better manage their money, the company said in the press release.
Brex said it now onboards thousands of clients monthly for payment and cash management services. Soon, those same clients will be able to tap software to streamline expense management and bill payments.
In the first quarter of 2021, Brex posted an 80 percent increase in new monthly customers on its platform. SMBs comprise 45 percent of the total client roster on the Brex platform.
“Brex is building the future of finance for the next generation of businesses,” said Scott Shleifer, partner at Tiger Global.
Shleifer added that the investment firm is “excited to partner” with Brex as they continue on a journey to rapidly expand and innovate its product suite, grow its customer base and head up a sector “that is dominated by incumbents.”
Brex said in February that it was planning to open an industrial bank in the Salt Lake City, Utah area that would be called Brex Bank. The venture would extend the company’s existing suite of financial products and business software in addition to offering credit solutions and deposit products backed by the FDIC.