Brex raises $150 million
Brex, a provider of corporate credit cards and cash management solutions, announced that an investment group including Lone Pine Capital as well as a group of existing investors led by DST has invested an additional $150 million in the company. The investment represents “a slight premium” to Brex’s post money valuation.
Brex is using the proceeds to further invest across engineering and product and design functions in order to improve expense management, procurement and software tooling for its customers. The company will use a combination of organic efforts as well as small acquisitions to supplement its hiring and product development efforts.
The fintech spent the last few months adapting its business for the current economic conditions and public health environment. Brex introduced a new rewards program to better serve customers that have moved to remote work, added contactless payment support for Apple Pay and Google Pay and helped its customers obtain millions of dollars in CARES Act Payment Protection Program loans. Brex also released for general availability its all-online bank account replacement product, Brex Cash, which allows entrepreneurs the ability to sign up for a savings and payments product in 10 minutes without ever entering a bank branch.
“We’re glad to have additional capital at a time when customers need us to be focused 100% on providing services and solutions to help them navigate these challenging economic times.” – Henrique Dubugras, cofounder and co-CEO of Brex.
“We are excited to have a front row seat as Brex continues to revolutionize financial services. With one of the strongest executive teams in fintech, we look forward to seeing Brex continue to provide support and innovative solutions to its customers through this dynamic and unprecedented business environment.” – David Craver, Portfolio Manager and Managing Director of Lone Pine Capital.
Bottom Line: both Brex and Vouch Insurance are backed by Y Combinator.