Brex, the US spend management platform, plans a strategic partnership-driven approach for expanding into the EU market, as per a key executive involved in its international strategy.
Erica Dorfman, EVP of global financial products at Brex, stated: “We aim to enter thoughtfully by collaborating with partners and targeting areas with established demand for Brex’s products.”
“Our objective is not to launch aggressively without clear direction.” Brex, known for corporate cards and expense management solutions for startups, was valued at $12.3bn in 2022, and recently announced its EU launch, having obtained an EU Payment Institution license.
This license permits the sale of corporate cards and spend management products across the EU. The San Francisco-based company has opened an office in the Netherlands, employing a 12-person team for sales, operations, and customer support.
Brex plans a phased customer onboarding over the coming months, with full EU operations expected by early 2026. Established in 2017, Brex initially focused on startups but has since expanded to larger enterprises, a strategy it will replicate in the EU. Its clientele includes over 250 public companies such as Coinbase, Robinhood, and Scale AI.
Currently serving 1,500 customers with EU operations, Brex faced limitations previously, being able to offer spend management services solely to European companies with US connections. Now, with the new license, this obstacle has been removed. Potential European competitors include Spendesk, Pleo, Payhawk, and Tradeshift.
Addressing market differences, Dorfman noted: “Europe is a distinct market with each country having unique aspects, affecting both acquisition strategies and market needs.”
“While there’s more fragmentation in Europe’s card market, the fundamental customer needs for corporate cards, expense management, and constant currency remain.”
Brex intends to leverage partnerships with Navan, a US travel expense startup, and Zip, a US procurement startup, for its EU entry.
Dorfman commented: “We will enter the market alongside partners like Zip and Navan, facilitating existing European customers with our integrated services like BrexPay for Navan and Brex for Zip.”
Founded by Pedro Franceschi and Henrique Dubugras, Brex’s revenue stems from transaction fees, foreign-exchange fees, and subscriptions. It is projected to achieve $500m in annual revenues this year.
Brex, operating without a US banking license but in partnership with a bank, has no immediate plans to bring its banking and bill pay services to the EU, pending future licenses. The UK is the next target market for Brex.
Dorfman added: “Our existing customer base shares a lot of commonalities in terms of business types.”