Brex, a San Francisco, CA-based provider of a corporate card for startups, raised $125m in Series C funding.
The round – which brought total funding raised to date to $180M+ and the valuation to over $1 billion – was led by Greenoaks Capital, DST Global and others.
The company has a plans to use the funds to further invest in enhancing its features, including its rewards launch later this fall.
Led by Henrique Dubugras, CEO, Brex provides startups with a corporate card with instant online signup, limits higher than traditional card offerings and embedded expense and receipt management tools.
Founded in 2017 by the founders of Brazilian payments processor Pagar.me, Brex participated in the Y Combinator Winter’17 batch. The card was publicly launched in June 2018.
In a statement, co-founder Henrique Dubugras said the investment will support its growth trajectory.
Brex, which was reported by the Wall Street Journal last month to be in the midst of closing an investment that would secure its unicorn status, differentiates itself from other commercial card companies by not requiring clients to hold personal liability for their company spend on the card.
In an interview with the publication this week, Dubugras said the company is on its way to “disrupting American Express.” “If the company grows as much as we expect it to grow, it’s a $100 billion business,” he said.
The company is first targeting tech startups, which have trouble getting banked and accessing capital — even startups that raise a significant amount of money.
“If you have raised millions of dollars from credible investors, why is it that you can’t get a credit card instantly and why aren’t the credit limits more flexible?” said Y Combinator Continuity Fund Partner Anu Hariharan, also a member of the Brex board, in an interview with the WSJ.
Reports noted, though, that there are “limitations” to Brex’s commercial card offering. Businesses are not allowed to carry a balance beyond 30 days, for example.