Brex

Brex offers banking and credit products to startups and large enterprise customers through a web portal and mobile app. The company used to offer its services to SMEs which was later discontinued in June 2022. It offers cash accounts, Mastercard credit cards, and business solutions for expense management and invoice payment, which are bundled with its Brex Premium package. The platform is monetized on a subscription basis with a monthly fee of USD 49 for Brex Premium as well as interchange fees on transactions made through its credit cards. It also charges commissions of 1%–1.5% on revenue for ecommerce companies that opt to gain instant access to revenue.

It also offers additional value added services such as automatic reconciliation through its integrations with accounting software such as QuickBooks, Sage, and SAP, and develop customized workflows through APIs, available to all customers at no extra charge. It also offers travel booking services called Brex Travel. Brex’s Pro access product allows accountants, advisors, and bookkeepers to collaborate with their clients on their Brex accounts. In addition, Brex offers e-commerce businesses on selected sales platforms (Amazon, Square, Stripe, PayPal, and Shopify) to gain instant access to revenue, and it also offers venture debt to early-stage startups.

Brex made several acquisitions to expand its product portfolio, beginning with startups Neji, Compose Labs, and Landria in March 2020. Neji, a blockchain startup, was to bolster Brex’s cybersecurity position as it grows; video experience platform Compose Labs will improve the quality and scope of Brex’s ecommerce underwriting data; and Landria, a database management platform for business SaaS tools, will help improve Brex’s core technology infrastructure. It also acquired New York and Israel-based API developer Weav for USD 50 million in August 2021, intending to leverage Weav’s universal API for commerce platforms to expand its offerings in lending, visualization, and insights. The acquisition followed Brex’s initial tie-up with Weav to launch instant payouts for Shopify sellers in March 2021. Following the acquisition, Brex planned to develop and recruit for an “innovation hub” in Israel, which was expected to be led by Nadav Lidor (CEO, Weav).

Key customers and partnerships

Brex partners with several banks including Emigrant Bank, Bank of the West, and Radius Bank to offer cash accounts and Mastercard credit cards.

Funding and Financials

In January 2022, Brex raised USD 300 million in an extended Series D funding round co-led by Greenoaks Capital and TCV, valuing the company at USD 12.3 billion. The company planned to funnel the fresh capital into product development and recruitment, with aims to expand headcount to 1,000 employees by the end of the month. It also intended to develop new offerings for mid-market and larger businesses in addition to its existing demographic of startups and SMEs.