The two-year-old Brex start-up now has a valuation of 2.6 billion dollars

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Brex, the start-up specializing in business credit cards, raised $ 100 million in a new round of fundraising, raising the company's value to $ 2.6 billion.

It was only in October that San Francisco-based Brex became the latest financial technology unicorn with a $ 125 million capital increase led by Greenoaks Capital and DST Global at a valuation of $ 1.1 billion. & Nbsp; The Kleiner Perkins Digital Growth Fund was a leading investor with participation from existing donors including Y Combinator Continuity, Ribbit Capital, DST Global, Greenoaks Capital and IVP.

Brex is one of many FinTechs that are tackling the corporate credit card market. As small and medium-sized enterprises are largely ignored by major financial players, fintech has multiplied digital offers to disrupt the sector. These fintechs deploy virtual cards, digital spend management tools and services to transform the way credit is issued and used within a company. & Nbsp; Competition is fierce with Marqeta, Stripe and Extend, which are attacking the market. At the same time, credit card issuers are paying more attention to their small businesses. Brex is however distinguished in terms of valuation and growth.

Henrique Dubugras, co-founder and co-CEO of Brex, said that what made Brex different was its underwriting process. Traditional banks examine the financial history of a company to determine if it is solvent. Brex subscribes the borrower in real time based on current data. He also built his subscription platform from scratch, not having to rely on an old system, as do many traditional banks. This, added Mr. Dubugras, prevents banks from customizing reward programs based on an industry or consulting real-time data to determine a credit limit. "Every day we reevaluate it and that allows us to give higher limits, no personal guarantees and to subscribe much more quickly," said Dubugras. "Applying this to these vertical markets has been an extremely successful value proposition." & Nbsp; The latest funding will be used to improve business expense management features and offer rewards in cards. Brex will also use revenue to penetrate new markets, including credit cards for life sciences companies.

Brex was born out of the frustration that Dubugras and his co-founder, Pedro Franceschi, had to face in trying to get a business credit card for their startup. Brex gives a credit to startups based on the amount of money in their bank accounts. Early start-ups have long struggled to obtain credit cards because they have no income. Traditional credit card issuers often reject their requests, forcing both originators and founders to use their personal credit cards to finance their operations.

"The business is experiencing incredible growth since we announced our last round," Dubugras said. He cited as an example the launch of the credit card for e-commerce in February. This card has grown rapidly and counts among its customers the brands Malin + Goetz, Outdoor Voices and Boxed.com. Brex offers 60-day payment terms, interest-free financing and rewards to meet the needs of this industry. According to Brex, this is an area that has long been ignored by traditional financial players. Brex subscribes the e-commerce credit card based on the company's sales. For startups, credit is based on their cash balance. With life sciences, Brex will look at all the funds available to the company, be it venture capital, university funding or grants. "Banks are struggling to subscribe and understand the life sciences," Dubugras said. "It's different from a traditional startup. Some do not have VCs.

To date, Brex has raised $ 315 million and, in April, obtained $ 100 million in capital from Barclays in the form of a line of credit. Dubugras said that an initial public offering was not on the horizon for the moment. "We created the company a little over two years ago. We are in no hurry to make public. It is now a matter of raising private capital.

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Brex, the start-up specializing in business credit cards, raised $ 100 million in a new round of fundraising, raising the company's value to $ 2.6 billion.

It was only in October that San Francisco-based Brex became the latest fintech unicorn with a $ 125 million capital increase led by Greenoaks Capital and DST Global at a valuation of $ 1.1 billion. This time, the Kleiner Perkins Digital Growth Fund was the lead investor, with the participation of existing lenders including Y Combinator Continuity, Ribbit Capital, DST Global, Greenoaks Capital and IVP.

Brex is one of many FinTechs that are tackling the corporate credit card market. As small and medium-sized enterprises are largely ignored by major financial players, fintech has multiplied digital offers to disrupt the sector. These fintechs deploy virtual cards, digital spend management tools and services to transform the way credit is issued and used within a company. Competition is fierce with Marqeta, Stripe and Extend all targeting the market. At the same time, credit card issuers are paying more attention to their small businesses. Brex is however distinguished in terms of valuation and growth.

Henrique Dubugras, co-founder and co-CEO of Brex, said that what made Brex different was its underwriting process. Traditional banks examine the financial history of a company to determine if it is solvent. Brex subscribes the borrower in real time based on current data. He also built his subscription platform from scratch, not having to rely on an old system, as do many traditional banks. This, added Mr. Dubugras, prevents banks from customizing reward programs based on an industry or consulting real-time data to determine a credit limit. "Every day we reevaluate it and that allows us to give higher limits, no personal guarantees and to subscribe much more quickly," said Dubugras. "Applying this to these vertical markets has been an extremely successful value proposition." Brex will also use revenue to penetrate new markets, including credit cards for life sciences companies.

Brex was born out of the frustration that Dubugras and his co-founder, Pedro Franceschi, had to face in trying to get a business credit card for their startup. Brex gives a credit to startups based on the amount of money in their bank accounts. Early start-ups have long struggled to obtain credit cards because they have no income. Traditional credit card issuers often reject their requests, forcing both originators and founders to use their personal credit cards to finance their operations.

"The business is experiencing incredible growth since we announced our last round," Dubugras said. He cited as an example the launch of the credit card for e-commerce in February. This card has grown rapidly and counts among its customers the brands Malin + Goetz, Outdoor Voices and Boxed.com. Brex offers 60-day payment terms, interest-free financing and rewards to meet the needs of this industry. This is an area that, in Brex's view, has long been ignored by traditional financial players. Brex subscribes the e-commerce credit card based on the company's sales. For startups, credit is based on their cash balance. With life sciences, Brex will look at all the funds available to the company, be it venture capital, university funding or grants. "Banks are struggling to subscribe and understand the life sciences," Dubugras said. "It's different from a traditional startup. Some do not have VCs.

To date, Brex has raised $ 315 million and, in April, obtained $ 100 million in capital from Barclays in the form of a line of credit. Dubugras said that an initial public offering was not on the horizon for the moment. "We created the company a little over two years ago. We are in no hurry to make public. It is now a matter of raising private capital.