Fintech Brex’s Revenue Surges After Regional Bank Turmoil
Brex, a credit-card startup, has seen a surge in usage of its products following this year’s regional banking turmoil.
The company has surpassed $100 million in annual recurring revenue for Empower, its spend management business, according to a statement reviewed by Bloomberg News. It said Brex’s business accounts unit is also on pace for $100 million in revenue in the next 12 months.
The firmwide annual run rate is about $500 million, meaning its revenue is on track to reach roughly $500 million over the next 12 months if its current rate of growth continues, according to people familiar with the matter, who asked to not be identified because the details aren’t public. That is an increase of about 50% year over year, one person added.
A representative for Brex declined to comment on the overall revenue projections. The company was last valued at $12.3 billion in a funding round last year, according to data provider PitchBook.
Brex’s cash management accounts have continued to grow in part because it’s able to insure up to $6 million in deposits. Typically, bank accounts come with the standard Federal Deposit Insurance Corp. protection for up to $250,000, but Brex is able to spread our customers’ funds across 24 different bank partners to give the money the extra protection, co-founder and Co-Chief Executive Officer Henrique Dubugras said an interview. Anything in excess of that is put in investments such as money market funds or government bonds, he said.