economy

January 23, 2026

Capital One acquires Brex for a steep discount to its peak valuation, but early believers are laughing all the way to the bank

Before everyone sharpens their knives, consider that for the VCs who backed Brex at its outset, the sale is a triumph.

Capital One acquires Brex for a steep discount to its peak valuation, but early believers are laughing all the way to the bank

TL;DR

  • Capital One will acquire Brex for $5.15 billion in cash and stock.
  • This valuation is less than half of Brex's last private-market valuation of $12.3 billion.
  • Early investors, such as Ribbit Capital, are expected to see significant returns on their initial investment.
  • Brex's rival, Ramp, has seen its valuation increase significantly during the same period.
  • Brex recently obtained a license to operate in the European Union.
  • The acquisition will provide Capital One with Brex's tech platform, clients, and EU market access.
  • Brex's founders, Pedro Franceschi and Henrique Dubugras, have a history in the payments industry.
  • Brex previously made controversial decisions, including abandoning smaller business customers.
  • The acquisition is expected to close in the second quarter.

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