Brex raises USD 100 mln to reach USD 2.6 bln valuation

The funding round was led by Kleiner Perkins Digital Growth Fund. The extension also has participation from existing investors, including Y Combinator Continuity, GreenOaks Capital, IVP, Ribbit Capital, and DST Global.

This takes Brex’s total equity funding to USD 315 million, with a valuation of USD 2.6 billion The company launched its product last June with USD 57 million in funding from investors such as PayPal’s founders and Y Combinator. It went on to raise a USD 125 million Series C round in October, at a valuation of USD 1.1 billion, and made its first acquisition.

Brex also raised an additional USD 100 million debt round a couple of months back with Barclays. The startup acts as an underwriter and sets credit limits based on factors such as who the start-up’s investors are, its cash balance and spending patterns – not on credit history. Startups don’t pay any fees for the first five cards, after which they pay USD 5 per month for each card. Brex also makes money from transaction fees.