- Financial tech company Brex announced that it raised $200 million in debt capital
Brex — a financial tech company that helps ambitious companies scale — has announced a $200 million debt capital raise to help continue the rapid expansion of Brex’s e-commerce product. This capital is in the form of a warehouse line of credit from Credit Suisse, which is backed by Brex’s corporate charge card receivables.
This is considered Brex’s second warehouse line of credit and its first was a $100 million debt facility announced with Barclays Investment Bank in April 2019.
Brex is continuing to enhance its risk and financial operational talent with recent hires including head of credit Mira Srinivasan from American Express’s commercial card underwriting team, VP of Cash Erica Dorfman from Tally’s finance and capital markets department, and VP of payments Marco Mahrus from Uber’s payments team. And Brex has complemented these hires with investment into its payments and capital markets technology, which is highlighted by its Fall 2019 partnership with Mastercard.
“Brex is strengthening its funding and credit infrastructure to support our rapid growth and market expansion,” said Henrique Dubugras, co-founder and co-CEO of Brex. “The recent debt funding from Credit Suisse is a major milestone for Brex and for our e-commerce business in particular.”
This financing is expected to help bolster Brex’s e-commerce business, which has been highly successful since launching in February 2019 and has added notable customers including The Black Tux, Perfect Keto, Outdoor Voices, and UNTUCKit.
And the funding allows Brex to expand its financial and service offering for online brands — which are attracted to its interest-free financing, 60-day payment terms, valuable rewards and expense management software.
“Brex is perfect for online brands because it offers financial flexibility and high-quality software,” added Aaron Hoey, CEO at Amour Vert (a Brex Ecommerce customer).
So far, Brex has raised $315 million in equity financing from Y Combinator Continuity, Ribbit Capital, Greenoaks Capital, DST Global, IVP, Peter Thiel, and Max Levchin along with $300 million in debt capital from Barclays Investment Bank and Credit Suisse.
