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Wednesday, April 24, 2024

Brex raises $150 million as business spending dwindles

Brex Founders Pedro Franceschi & Henrique Dubugras/Photo: CradRates-Fintech
Brex Founders Pedro Franceschi & Henrique Dubugras/Photo: CradRates

The American based fintech company Brex that provides financial services for emerging businesses has recently received $150 million in funding  from a group of existing investors including DST Global and Lone Pine Capital.

This fresh capital strengthens the Brex balance sheet and bolsters Brex’s standing as the leading financial services provider to technology, ecommerce, life sciences and other businesses, reports the Business Wire.

With its new raise, Brex co founders Henrique Dubugras and Pedro Franceschi have now amassed $465 million in venture capital funding to-date.

Henrique Dubugras said, “The fresh injection of capital will enable the business to continue providing services to customers. This, he says, is particularly important in the current economic climate. This new investment will help boost Brex’s post-money valuation”.

Brex is particularly using the proceeds for further investment across engineering and product and design functions to improve expense management, procurement and software tooling for its customers. The company will use a combination of organic efforts as well as small acquisitions to supplement its hiring and product development efforts.

Recent times have seen Brex making some concessions to navigate global lockdowns.

This includes helping customers to acquire CARES Act Payment Protection Program loans as well as increasing availability of Brex Cash, which is a bank account replacement that is strictly online.

Baris Akis, Co-Founder and President of Human Capital, stated that product and service development at Brex has only doubled with the current pandemic, reports the Tokenist.

Read more on Brex here

Again according to Dubugras, the business will be fine regardless of COVID-19 because they deal mainly with startups, so some level of risk was always involved, and this new influx only helps them take more risks.

“The capital is so we can play offensive while everyone else plays defensive,” added he.

Since countries around the globe are gradually looking to lift lockdown measures, there might be yet another shift in consumer spending which is meant for businesses like Brex.


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