Brex, a San Francisco, California-based credit card company that provides corporate credit cards to technology start-ups, as per recent reports, has just closed a Series C extension round, raising yet another $100 million in investment funding. The Series C extension was led by Kleiner Perkins Digital Growth Fund and was participated by Brex’ existing investors, Y Combinator Continuity, GreenOaks Capital, IVP, Ribbit Capital, and DST Global.
With this recent funding, Brex’ total equity funding has now raised to $315 million, thus achieving a $2.6 billion valuation.
Last year, in Jun. 2018, Brex launched its product with a $57 million funding from investors such as PayPal’s founders and Y Combinator. Later, in Oct. 2018, the company closed a $125 million Series C round, to reach $1.1 billion in valuation, and made its first acquisition. Also, a couple of months back, in an additional debt round with Barclays, the company raised $100 million.
Brex, acting as an underwriter, follows a unique approach to set credit limits, i.e. the San Francisco-based startup instead of using credit history for setting the card limit, bases its decision on factors such as who the start-up’s investors are, its cash balance, and spending patterns. Brex exempts start-ups from paying any fees for the first five cards, after which it charges them a $5 monthly fee for each card.
Furthermore, Brex, allowing users to capture receipts with a smartphone camera, matches them to a statement and further facilitates direct integration with multiple accounting tools, such as QuickBook, Expensify, and Xero.