US fintech startup Brex, providers of corporate cards for other startups, and Barclays Investment Bank have announced a $100m debt capital raise to help power the next phase of the firm’s growth.
The capital comes in the form of a warehouse line of credit, which is backed by Brex’s corporate charge card receivables.
With the financial support from Barclays, Brex stated it will continue to scale its corporate offerings to different business verticals and evolve to meet the needs of its growing clients.
“We are innovating at a rapid pace, and our partnership with Barclays allows us to continue to support our growth financially,” said Henrique Dubugras, co-founder and CEO of Brex.
“We will continue to expand the Brex platform by harmonizing our impactful technology with financial expertise and regulatory compliance.”
Recently, the company has made “significant enhancements” to its financial and capital markets infrastructure including software upgrades and strategic financial hires from SoFi, PwC and Kraft Heinz.
Frank D. Yeary, former Global Head of M&A at Citigroup and Vice Chancellor of the University of California, Berkeley commented: “A financing of this size and structure is a significant milestone for any company and reflects a meaningful maturity level of Brex’s balance sheet, management and business model.
“Given the company’s existing customer momentum and new capital position, I anticipate even more successes as Brex tackles some exciting new customer verticals.”
Brex’s concept is built around companies being able to gain access to a credit card with no personal guarantees, have higher credit limits, greater transparency, and instant approvals.
Powered by the Mastercard network, the startup also offers personalised rewards and travel programs as incentives.
“Partnering with high-growth fintech companies like Brex is core to our strategy,” explained Martin Attea, MD, Head of Securitized Products Origination at Barclays.
“We are excited to see the continued growth at Brex and look forward to assisting them in offering high quality and cutting-edge solutions to their rapidly expanding customer base.”
To date, Brex has raised $215m in equity financing from Y Combinator Continuity, Ribbit Capital, Greenoaks Capital, DST Global, IVP, Peter Thiel and Max Levchin.
