An interview with CEO Henrique Dubugras
Brex, a fintech firm that gives company playing cards and spend-management software program to companies, introduced earlier at the moment that it closed a $425 million Series D round of capital at a valuation of around $7.4 billion. The brand new capital got here lower than a yr after Brex raised $150 million at a $2.9 billion pre-money valuation.
So, how did the corporate handle to so quickly increase its valuation and lift its largest spherical to this point? TechCrunch spoke with Brex CEO Henrique Dubugras after his firm’s information broke. We dug into the how and why of its new funding and riffed on what going remote-first has accomplished for the corporate, in addition to its skill to draw culture-aligned and extra numerous expertise.
Extra clients, extra product
Undergirding the corporate’s monetary information at the moment was its announcement of Brex Premium, a software program suite that the unicorn intends to cost for. As TechCrunch has written ad nauseam, there was an attention-grabbing rift between company spend-management firms concerning whether or not they cost for the software program that they layer round their proffered enterprise plastic. Brex has now crossed this specific Rubicon and joined people who do, a minimum of in some instances.
Brex Premium will run clients $49 per 30 days, which Dubugras described in a name as inexpensive than the programs it could exchange. For firms searching for built-in invoice pay, expense administration and the like, it might be a great match. And the service might bolster Brex’s mixture income run fee with high-margin, recurring software program charges that public market buyers have lengthy coveted.
On the subject of buyers, let’s circle again to Brex’s spherical. Right here’s what we have to know: How rapidly has Brex grown in current months, why did the corporate select Tiger as its lead investor (from over $1 billion in demand for the spherical), and what’s forward for the corporate itself?
Per Dubugras, from March 2020 to March 2021, Brex grew its revenues and TPV, or whole cost quantity, by greater than 100%. As Brex reached $1 billion in TPV throughout its first seven months of its existence, once more based on its CEO, the corporate’s mixture TPV add throughout that 12-month interval was in extra of that determine. Multiples increased, by our reckoning.
That development explains how Brex was capable of double its valuation. It grew rapidly. The way it did so is price exploring.