New updates have been reported about Brex (PC:BREXX)
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Brex, a financial services provider, has achieved a significant milestone by securing a license to operate in the European Union. This development allows Brex to directly issue credit and debit cards and offer its spend management products across all 30 EU countries without any workarounds, as stated by co-founder and CEO Pedro Franceschi. Previously, Brex supported 60 currencies in 200 countries but was limited to selling its products to companies with a U.S. presence. This expansion enables Brex to provide spend management solutions, including card issuance and embedded payments, to EU companies and startups. However, banking and bill pay services will not be available initially, with plans to introduce them in the future.
This strategic move positions Brex to serve European startups, particularly those that may not qualify for traditional bank offerings. Despite the absence of banking services, Brex’s expense management cards could appeal to young EU startups. Looking ahead, Franceschi has expressed intentions to expand Brex’s presence in the U.K., although specific plans have not been disclosed. Financially, Brex is on track to cease cash burn by 2025, a step towards a potential IPO. In 2023, Brex faced challenges, including layoffs and high cash burn, but is now projected to achieve $500 million in revenue this year. While Brex has not announced new equity VC funding since its $300 million Series D-2 round in 2022, it raised $260 million through bond sales in March 2024. This international expansion comes as Brex’s U.S. fintech competitors, like Ramp and Mercury, also experience significant growth.