Brex fintech startup, not to be confused with the European mess called Brexit, is a fintech startup that is anything but a mess. The secret of its success is rooted in its exclusivity and financial services, which it provides for startups.
The business credit cards that Brex offers is unlike anything else on the market and gives company owners some peace of mind, especially amid the volatile times we live in. So, what makes Brex so unique?
How does Brex make money?
Opening a Brex account is not cheap. You either have to have $50 000 professionally invested or put down $100 000 to get the ball rolling. This is where Brex makes its money and this is also why Brex is the best fintech startup. Apart from the client investment, Brex also makes money off of subscriptions for their software.
Their promise to their clients is that if times are tough and they default, it will not harm their credit. Although the company is still young, at a recent Brex valuation, it raised more than $425 million recently and currently stands at a $12.3 billion valuation. This goes to show that their services and reputation are leaps ahead of their closest rivals.
What bank does Brex use?
Apart from being a leader in corporate spending and business finance, Brex uses Emigrant Bank to issue their Brex credit card. The main reason why Brex uses Emigrant bank is because of its reputation as a private financial institution. Emigrant Bank is the oldest savings bank in New York City and has years of experience and the Brex platform seamlessly integrates with their policies.
How do you get a Brex card?
Getting a Brex card is easier than you might think, and their rewards program makes it even easier to decide on Brex as your business’s financial services provider. All you need is $50 000 in the bank and your card is as good as a done deal. So, what is the Brex card and how much does Brex cost on a monthly basis you might ask?
They do not charge an annual fee, any foreign transaction fee or any other hidden fee for that matter. You only start paying monthly subscription fees for their software if you upgrade to their Pro packages. Your Brex card enables you to do all your business spending and also run speed reports, track spending and much more.
What you get for your buck?
Depending on the package that you subscribe to, Brex offers its clients the ability to track and manage every aspect of their business’s finances. Clients get detailed reports on their spending habits and make smart suggestions on where savings can be made. The whole platform is aimed at helping businesses grow through making smart financial decisions.
When will Brex go public?
The company completed five years in 2022, but due to the setbacks in 2021 and 2022, when the revenue decreased, the company had to give up on a set of clients and focus more on startups and the global turmoil in tech stocks and IPOs during the second half of 2022, founders decided to delay IPO plan further.
The Brex founders mentioned that they are still a couple of years away from a Brex IPO but going by the current state of things in the technology sector, where everyone from Amazon to Microsoft and Intel to Meta has taken a hit, an IPO does not seem to be happening soon. It is not that they do not have confidence in their product, but rather that they are in no hurry. They still have so much to offer and new products to roll out, so going public might just slow their progress.
They entered the crypto arena, too, to offer their clients the opportunity to redeem Brex points for crypto. This is a major selling point for Brex corporate cardholders as they can quickly rack up a decent amount of crypto when they spend. It also solidifies their belief that cryptocurrencies will play a major role in finance in the coming years.
