Flex, which affords 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 informed TechCrunch solely.
The fairness funds have been raised at a valuation of “just below $250 million.” The corporate final raised a $20 million Series A introduced in September 2023.
Flex was formally shaped in 2022 by CEO Zaid Rahman after evolving from being a development platform (working underneath the title Flexbase Technologies) to a fintech for enterprise homeowners. The corporate came out of stealth in September of 2023 with a enterprise bank card and expense monitoring product. Immediately, Flex markets itself as “an all-in-one finance platform for mid-market enterprise homeowners to handle their funds from the time the proprietor makes income, 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 deal with mid-market enterprise homeowners who’re additionally CEOs of their corporations relatively than enterprises or venture-backed startups.
“Enterprise homeowners are likely to co-mingle their private and enterprise bills, deposits, and funds, resulting in accounting reconciliation points and cashflow gaps,” Rahman mentioned. “Our development validates the demand from enterprise homeowners for an all-in-one ecosystem that simplifies their funds.”
Flex, he mentioned, serves as extra of “a monetary 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 development enterprise.
“All enterprise entities and private life sit in a single dashboard,” Rahman defined to TechCrunch. “They’ll determine in app which transaction enterprise, which is private. This may be advanced from a software program and compliance standpoint.”
Flex’s common buyer makes $25 million in income a 12 months. Most of the startup’s clients, Rahman claims, have switched from the American Specific Centurion Card, generally referred to as the “Black Card.”
Flex, he mentioned, affords issues like AI underwriting in addition to AI bill processing and expense administration, which routinely ingests and schedules invoice funds for homeowners.
Its card additionally offers 0% interest 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 solely 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 informed TechCrunch that the corporate surpassed $1 billion in annualized complete fee 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 workers, 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 group in New York and San Francisco.
”Flex has discovered a phase of the massive B2B market ignored by each innovators in B2B fintech and enormous incumbents — owner-owned companies,” mentioned Yash Patel, basic companion at Titanium Ventures, who’s becoming a member of Flex’s board of administrators.
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