Financial management platform for businesses Brex has closed on a $425 million Series D funding round led by Tiger Global. This funding now brings Brex’s valuation to over $7.4 billion according to a statement by the company.
Additional investors include new backers TCV, GIC, Baillie Gifford, Madrone Capital Partners, Durable Capital Partners LP, Valiant Capital Management, and Base10. All existing major investors participated in the funding round including Y Combinator Continuity, Ribbit Capital, DST Global, Greenoaks Capital, Lone Pine Capital and IVP.
Henrique Dubugras said their investors believe in the team, business model, and vision:
“We are delighted to have them on board for the next phase of our journey. This new investment round will fuel our growth as we continue to build out an all-in-one financial solution for all businesses.”
Dubugras said that Brex supports both startups as well as more established SMEs. They now have various services beyond feature-rich card including Brex Premium – launched today. Dubugras believes they can easily compete with establishment finance as they can more quickly iterate and are using the most up-to-date technology.
Since launching in 2017 with a corporate card for venture-backed businesses, Brex says it now onboards thousands of new tech and non-tech customers every month that use a combination of its payment and cash management services, and will now be able to take advantage of expense management and bill pay software. In Q1 2021 alone, Brex said it grew total customers by 80% with total monthly customer additions increasing by 5x. SMBs now account for 45% of customers on the Brex platform.
Brex’s vision is for “all in one finance” to reduce the time spent on financial management to enable firms to focus on growing their products and services. You can anticipate a growing portfolio of features and services coming from the fast-growing Fintech in the coming months.
“Brex is building the future of finance for the next generation of businesses,” said Scott Shleifer, Partner, Tiger Global. “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.”
Brex also partners with established banks as well as competing with these companies.