An interview with CEO Henrique Dubugras
Brex, a fintech company that provides corporate cards and spend-management software to businesses, announced earlier today that it closed a $425 million Series D round of capital at a valuation of around $7.4 billion. The new money came less than a year after Brex raised $150 million at a $2.9 billion pre-money valuation. So, how did the company manage to rapidly boost its valuation and increase its most significant round to date? TechCrunch spoke with Brex CEO Henrique Dubugras after his company’s news broke. We dug into the how and why of its new investment and riffed on what going remote-first has done for the company, as well as its ability to attract culture-aligned and more diverse talent.
More customers, more product
Undergirding the company’s financial news today was its announcement of Brex Premium, a software suite that the unicorn intends to charge for. As TechCrunch has written ad nauseam, there has been an exciting rift between corporate spend-management companies regarding whether they charge for the software they layer around their proffered business plastic. Brex has now crossed this particular Rubicon and joined those that do, at least in some cases.
Brex Premium will run customers $49 per month, which Dubugras described in a call as less expensive than the systems it may replace. It could be a good fit for companies looking for integrated bill pay, expense management, and the like. And the service could bolster Brex’s aggregate revenue run rate with high-margin, recurring software fees that public market investors have long coveted. On the topic of investors, let’s come back to Brex’s round. Here’s what we need to know: How quickly has Brex grown in recent months, why did the company choose Tiger as its lead investor (from over $1 billion in demand for the round), and what’s ahead for the company itself?