Flex, which gives private finance software program and funds infrastructure for enterprise homeowners, has raised $25 million in fairness funding whereas securing a $200 million credit score facility, it instructed TechCrunch completely.
The fairness funds had been raised at a valuation of “just under $250 million.” The corporate final raised a $20 million Collection A introduced in September 2023.
Flex was formally shaped in 2022 by CEO Zaid Rahman after evolving from being a building platform (working below the identify Flexbase Applied sciences) to a fintech for enterprise homeowners. The corporate got here out of stealth in September of 2023 with a enterprise bank card and expense monitoring product. At the moment, Flex markets itself as “an all-in-one finance platform for mid-market business owners to manage their finances from the time the owner makes revenue, to the time they personally spend it,” Rahman says.
Rahman likens Flex’s providing to that of fintech giants Ramp and Brex however with a concentrate on mid-market enterprise homeowners who’re additionally CEOs of their corporations quite than enterprises or venture-backed startups.
“Business owners tend to co-mingle their personal and business expenses, deposits, and payments, leading to accounting reconciliation issues and cashflow gaps,” Rahman mentioned. “Our growth validates the demand from business owners for an all-in-one ecosystem that simplifies their finances.”
Flex, he mentioned, serves as extra of “a financial co-pilot” for hundreds of companies and their homeowners, similar to Shoreside Help, a logistics firm; Freebird, a male grooming firm; and MOD Companions, a building enterprise.
“All business entities and personal life sit in a single dashboard,” Rahman defined to TechCrunch. “They can decide in app which transaction business, which is personal. This can be complex from a software and compliance standpoint.”
Flex’s common buyer makes $25 million in income a yr. Lots of the startup’s prospects, Rahman claims, have switched from the American Categorical Centurion Card, generally often called the “Black Card.”
Flex, he mentioned, gives issues like AI underwriting in addition to AI bill processing and expense administration, which mechanically ingests and schedules invoice funds for homeowners.
Its card additionally gives 0% curiosity for 60 days on all purchases.
Titanium Ventures led Flex’s $25 million fairness spherical, which included participation from Companyon Ventures, Florida Funders, MS&AD Ventures, AAF Administration, and First Look Companions. Victory Park Capital supplied the $200 million credit score facility.
In complete, Flex has secured $45 million in fairness and $300 million in credit score amenities with the debt completely funding its bank card providing, in accordance with Rahman.
Flex primarily makes income from transaction and interchange charges related to its playing cards and invoice pay merchandise along with deposit merchandise similar to banking. Its private platform is a subscription membership.
Whereas Rahman declined to disclose laborious income figures, he instructed TechCrunch that the corporate surpassed $1 billion in annualized complete cost quantity (TPV) in 18 months after launching its card and invoice pay automation product. It’s rising 25% month over month at present and Rahman expects to develop income by “5x” in 2025.
On the finish of 2024, Flex had 64 staff, up from 28 on the finish of 2023. It plans to make use of its new capital partly to construct out an AI and B2B funds crew in New York and San Francisco.
”Flex has discovered a section of the big B2B market ignored by each innovators in B2B fintech and huge incumbents — owner-owned companies,” mentioned Yash Patel, normal associate at Titanium Ventures, who’s becoming a member of Flex’s board of administrators.
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