Brex Partners with Zip to Enhance Enterprise Procurement and Payment Solutions

Brex, a fintech company initially focused on providing corporate cards to startups and SMBs, has been evolving its business model to serve enterprise customers. In April 2022, Brex announced a strategic push into enterprise software, aiming to diversify revenue beyond interchange fees by offering subscription-based financial software solutions.

Despite steady growth in software revenue, Brex acknowledged limitations in fully addressing complex enterprise needs alone. This led to strategic partnerships, such as with Navan for travel and expense management, and most recently with Zip, a procurement startup valued at $2.2 billion, to enhance its enterprise offerings.

The new "Brex for Zip" product integrates Brex’s virtual corporate cards directly into Zip’s procurement platform. This integration aims to streamline procurement and payment workflows, prevent unauthorized spending proactively, and simplify global operations with a unified card program tailored for enterprises with complex procurement processes.

Both companies serve over 30,000 businesses, including notable clients such as Anthropic, Coinbase, OpenAI, and Sephora. Their overlapping customer base and shared focus on enterprise growth make the partnership a natural fit, enhancing their competitive positioning in the enterprise fintech market.

Brex’s CEO Pedro Franceschi highlighted that Zip’s advanced procurement workflows complement Brex’s corporate card offerings, especially for sophisticated enterprises where procurement complexity demands more than a traditional corporate card solution. Zip’s track record of retaining every enterprise customer underscores the strength of its platform.

This partnership also reflects Brex’s strategic shift to reduce cash burn by leveraging partnerships rather than building all capabilities in-house. After restructuring and cutting nearly 20% of its workforce in early 2024, Brex has successfully reduced its cash burn by approximately 90% year-over-year, positioning itself for sustainable growth and eventual profitability.

Looking ahead, Brex aims to go public when market conditions and governance structures align, with an expected annual net revenue of $500 million in 2024. The company’s approach of “coopetition”—partnering with competitors to deliver superior integrated solutions—demonstrates a pragmatic strategy in the evolving fintech landscape.

The Brex-Zip partnership exemplifies how fintech companies are responding to customer demands for seamless, integrated financial operations. By combining strengths, they offer enterprises enhanced control over procurement and payments, reduce operational friction, and support global scalability.

This trend highlights the broader significance of collaboration in fintech, where companies balance competition with cooperation to accelerate innovation and meet complex enterprise needs more effectively. For businesses navigating procurement and payment challenges, such partnerships offer practical solutions that combine best-in-class technologies.