Brex, the first credit card company provider for startups, announced yesterday a $100 million debt financing via Barclays Investment Bank, a British multinational consumer and wholesale bank.
According to a report from TechCrunch, the company has raised a total of $215 million in equity funding at a $1.1 billion valuation for the past two years since it advanced from the Y Combinator Continuity, Ribbit Capital, Greenoaks Capital, DST Global, IVP, Peter Thiel, and Max Levchin.
Henry Dubugras, Brex’s CEO, clarified that the debt will power the company’s next phase of growth, which involves the launching of a credit card specifically designed for large companies. As explained by Dubugras, with the company’s fast equity raise, the team has decided to put most of it on their lending service, which will allow them to gain much more than their equity. The CEO also confirmed that with the companies fast growth, they currently have no plan of raising additional equity funding.
Just recently, Brex has managed to achieve momentous advancements in both its financial and capital markets, including software upgrades and strategic acquisitions by purchasing Elph, a blockchain startup company, which will provide significant help to Brex in creating the company’s next grand product, a credit card for Fortune 500 companies.
Martin Attea, Head of Securitized Products Origination at Barclays, expressed his delight to partner with the said startup company in offering high quality and innovative solutions to clients. He even noted that partnering with such a high-growth fintech company serves as a “core” to their company’s strategy.
Given the said milestone, Brex now prides itself with yet another way to give its customers higher quality of services that fit today’s needs and lifestyle. As mentioned by Frank D. Yeary, former Global Head of M&A at Citigroup and Vice-Chancellor of the University of California, the recent announcement reflects a significant maturity level of Brex as a rising model within the industry.