FinTech Brex gains ‘decacorn’ status after raising $300 million

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Financial technology company Brex has successfully raised about $300 million in a capital raise round. The news hasn’t been made public as of October 22. But according to the sources, a term sheet has already been signed. The latest round of funding has turned Brex into a ‘decacorn’ – meaning an organization valued more than $10 billion. It’s valuation is now at $12.3 billion.

The lead investor in FinTech Brex’s most recent funding round is said to be Greenoaks. The round also included participation from previous investors who want a larger stake in the organization after seeing its growth over the years.

All you need to know about Brex – a California-based FinTech firm 

Founded just 3 years ago in January 2017 by Henrique Dubugras and; Pedro Franceschi, Brex is a San Francisco-based financial services tech company. Brex is a financial technology company that is built around offering cash and credit card management accounts to tech organizations.

This FinTech also offers cutting-edge spend-management software along with other bank-related offerings. Its client list includes tech titans and companies like Carta and Airbnb. It is backed by investors like Kleiner Perkins, IVP, Y Combinator and Ribbit Capital.

The company co-founded by Franceschi and Dubugras (who are just in their mid-twenties, by the way!) has raised a total $1.5 billion with the latest capital injection. 

Brex’s focus is continuous evolution. On October 21 2021, the FinTech startup announced the launch of its new API – Brex API. This new open API will be made available to their existing customers at no additional charge. 

Brex API is designed to allow customers to manage their financial information seamlessly through a customizable interface. For Brex customers that don’t have in-house developers, Brex has also announced a partnership with Zapier. This partnership will enable workflow automation among products without having to code. The Brex API will allow developers to build workflows customized for the individual needs of their respective companies.

SEE ALSO: US fintech startup Tala raises $145 million for expanding crypto services

Dubugras’s conversation with Bloomberg’s Katie Roof

Bloomberg’s Katie Roof got the opportunity to speak to Dubugras (Brex co-founder and co-CEO) about the post-pandemic world and workforce, valuations and the venture debt of the Silicon Valley Bank. 

Dubugras said that company valuations have skyrocketed, especially for FinTech startups. He acknowledges that “what it means to be a billion dollar company is not what it meant before”. 

He further adds that large exits have given investors a much bigger appetite for risk and that the valuations merely represent the size of the potential outcomes of the winners, just venture capital at scale.

Reaching the ‘decacorn’ status in this duration is undeniably extraordinary. What’s even amazing is that, reportedly, Brex is on track to double revenue this year. However, there aren’t any concrete figures on hand. 

At the time of its previous capital raise, Brex told TechCrunch that it is onboarding thousands of non-tech and new tech customers every month. The company added then that it grew its total customer numbers by a whopping 80% in the Q1 2021, with total monthly customers soaring by 5 times.

SEE ALSO: Amazon-backed major BNPL player Capital Float raises $50 million

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Riddhi Jain is a technology content writer. She is based in India and has been working as a content writer since 2018. Riddhi has been writing content in the tech domain since May 2020 and can’t get enough of it. Riddhi has pursued most of her education from her hometown, Indore. She has graduated as a Bachelor of Business Administration and discovered her love for writing blogs while pursuing an internship during college. Once she discovered her love for writing, she went on to improve this skill set (and hasn’t stopped since). Riddhi’s writing relationship with iTMunch began in May 2020. This is where she developed a knack for writing content for the technology domain. She's an expert in tech content writing who has written over 700 blogs for iTMunch in just a year. Riddhi loves diving deep into tech sub-domains like financial technology, marketing technology, HR technology, Artificial Intelligence and gaming technology. She loves staying updated with the latest and upcoming trends in digital marketing, digital payments, fintech, gaming, web design and app development. She cherishes writing about futuristic technologies like blockchain and cryptocurrency, NFTs, Internet of Things, Facial Recognition, Machine Learning, Edge Computing, etc. Riddhi also likes to keep an eye on what’s going on with the tech titans like Google, Facebook and Apple. One of her major interests is in staying updated with the latest IT startups and the groundbreaking technologies they’re coming up with. When Riddhi is not writing content, she is binging on documentaries on Netflix (check out ‘The Great Hack’, ‘Seaspiracy’, and ‘What the Health’). She also likes reading books once in a while (Yuval Noah Harari and Michelle Magorian are some of her favorite authors). Riddhi also likes listening to podcasts like The Tim Ferriss Show (do listen to the ones with guest Naval Ravikant) and The Joe Rogan Experience.