The company provides cash and credit card management accounts to enterprises, big and small, and has begun offering spend-management software as well.
The company recently announced its new Brex API, available to all Brex customers at no extra cost, which enables users to integrate and manage financial information in a customizable interface. Brex also announced a partnership with Zapier which allows companies without back-end developers to automate workflows with a no-code approach.
Founded in 2017, Brex has now raised $1.5 billion in total funding across 11 funding rounds. The company’s massive $12.3 billion valuation grants it decacorn status, or that of a private business with a valuation over $10 billion.
While that figure would make some readers drop their phone, co-founder and co-CEO Henrique Dubugras recently acknowledged the eye-popping valuations being flaunted by fintechs as of late.
“What it means to be a billion dollar company is not what it meant before,” Dubrugas told Bloomberg. “The valuations represent the size of the potential outcomes of the winners. It’s just venture capital at scale.”
Well, if valuations represent the size of potential outcomes, then Brex has some serious potential moving forward. The huge valuation jump makes sense too, when you look at the way corporate spending technology has been growing in the past 12 months.
Competitor Ramp also announced a $300 million Series C round to hit a $3.9 billion valuation in August, with the company reporting a 1,000% surge in revenue and transaction volume since the beginning of the year, according to TechCrunch.
As corporate spending technology continues to skyrocket in usage and revenue, Brex is now on track to double its revenue in 2021, according to the TechCrunch report. This money is clearly being put to use as well, with the company continuing to push out new products and services across the market.
While Brex voluntarily withdrew its application for a US bank charter in August, originally filed in February, it said it was planning to modify and strengthen its application for resubmission at a later date.
Now, as Brex rolls out its new API offering and “Brex Premium,” it would seem like sky’s the limit for the San Francisco-based company.
While the corporate spending sector will most likely consolidate and slow down at some point, it seems Brex is using the recent hype to bring in money, assert its dominance in the space and use its influence to spread new products across the corporate ecosystem.
In other recent fintech news, the CFPB has ordered ‘Big Tech,’ i.e. Apple, Facebook, Google, Square and PayPal, to hand over its payment system information in an attempt to monitor consumer risk. Barclays also announced it will be implementing a new automated compliance portal through a partnership with Clausematch.