Financial services provider Brex announced on Thursday that it has achieved a major milestone by becoming licensed in the European Union. This allows the company to directly issue credit and debit cards and offer its spend management products to businesses in all 30 EU countries without requiring any workarounds, as stated by co-founder and CEO Pedro Franceschi in a blog post.
Previously, Brex supported 60 currencies across 200 countries but could only sell its products to companies with a U.S. presence. With this expansion, Brex is now authorized to provide spend management solutions, including card issuance, as well as embedded payments to EU-based companies and startups. However, banking and bill pay services will not be available initially, though the company plans to introduce them in the future.
This development is a positive step for Brex and could also benefit European startups. Brex has built its reputation by offering expense management cards to startups that may not yet qualify for traditional banking services. However, without a bank account offering, early-stage EU startups will still need to evaluate their options.
Franceschi also revealed plans to expand Brex into the U.K., though no specific details were provided. In December, he noted that the company is on track to stop burning cash by 2025, calling it a critical milestone ahead of a future IPO.
In February, sources indicated that Brex is projected to generate $500 million in revenue this year, marking a significant turnaround from 2023 when the company faced challenges, including layoffs and concerns over high cash burn. No timeline for an IPO has been disclosed yet.
Brex’s expansion into the international market comes as its U.S. fintech competitors experience notable growth. Ramp recently secured funding, reaching a $22.5 billion valuation shortly after a $16 billion valuation round. Similarly, Mercury raised $300 million in March, doubling its valuation to $3.5 billion.
Brex has not announced new equity funding since its $300 million Series D-2 round in 2022, which valued the company at $12.3 billion. However, in March 2024, it secured $260 million in debt financing backed by its spend management products to support its cash-intensive operations.