Brex closes Series D as valuation soars

The fintech’s latest round takes its total raised to over $940m to date.

Another day, another multi-million fintech funding round.

Founder-focussed US credit card fintech Brex has closed a $425m Series D funding round, seeing its valuation nearly triple to $7.4bn.

The round was led by existing investor Tiger Global, which has invested in the likes of Facebook, Square, Airbnb and Stripe, with participation from all existing major investors too, including Y Combinator Continuity, Ribbit Capital, DST Global, Greenoaks Capital, Lone Pine Capital and IVP.

A host of new investors come on board too, including TCV, GIC, Baillie Gifford, Madrone Capital Partners, Durable Capital Partners LP, Valiant Capital Management and Base10.

“Our investors - new and existing - believe in our team, our business model, our product vision, our customers, and the future of Brex. We are delighted to have them on board for the next phase of our journey,” said Henrique Dubugras, Brex Co-CEO. 

“This new investment round will fuel our growth as we continue to build out an all-in-one financial solution for all businesses.”

In the first quarter of 2021 alone, Brex expanded its customer base by more than 80 per cent, with total monthly customer additions increasing fivefold. 

"Brex is building the future of finance for the next generation of businesses,” added 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."

Alongside the funding announcement, the fintech also revealed its plans to launch a new premium product. 

Brex Premium will cost customers $49 per month and is billed as an “all-in-one financial solution for businesses”, offering business owners professional-level software to help them better manage their finances. 

Founded in 2017, after completing the Y Combinator accelerator programme, Brex has since raised over $940m from VCs and has more than 600 employees across its five offices.