Flex, which offers personal finance software and payments infrastructure for business owners, has raised $25 million in equity funding while securing a $200 million credit facility, it told TechCrunch exclusively.
The equity funds were raised at a valuation of “just under $250 million.” The company last raised a $20 million Series A announced in September 2023.
Flex was officially formed in 2022 by CEO Zaid Rahman after evolving from being a construction platform (operating under the name Flexbase Technologies) to a fintech for business owners. The company came out of stealth in September of 2023 with a business credit card and expense tracking product. Today, 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 offering to that of fintech giants Ramp and Brex but with a focus on mid-market business owners who are also CEOs of their companies rather 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 said. “Our growth validates the demand from business owners for an all-in-one ecosystem that simplifies their finances.”
Flex, he said, serves as more of “a financial co-pilot” for thousands of businesses and their owners, such as Shoreside Support, a logistics company; Freebird, a male grooming company; and MOD Partners, a construction business.
“All business entities and personal life sit in a single dashboard,” Rahman explained 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 average customer makes $25 million in revenue a year. Many of the startup’s customers, Rahman claims, have switched from the American Express Centurion Card, commonly known as the “Black Card.”
Flex, he said, offers things like AI underwriting as well as AI invoice processing and expense management, which automatically ingests and schedules bill payments for owners.
Its card also offers 0% interest for 60 days on all purchases.
Titanium Ventures led Flex’s $25 million equity round, which included participation from Companyon Ventures, Florida Funders, MS&AD Ventures, AAF Management, and First Look Partners. Victory Park Capital provided the $200 million credit facility.
In total, Flex has secured $45 million in equity and $300 million in credit facilities with the debt exclusively funding its credit card offering, according to Rahman.
Flex primarily makes revenue from transaction and interchange fees associated with its cards and bill pay products in addition to deposit products such as banking. Its personal platform is a subscription membership.
While Rahman declined to reveal hard revenue figures, he told TechCrunch that the company surpassed $1 billion in annualized total payment volume (TPV) in 18 months after launching its card and bill pay automation product. It’s growing 25% month over month currently and Rahman expects to grow revenue by “5x” in 2025.
At the end of 2024, Flex had 64 employees, up from 28 at the end of 2023. It plans to use its new capital in part to build out an AI and B2B payments team in New York and San Francisco.
”Flex has found a segment of the large B2B market ignored by both innovators in B2B fintech and large incumbents — owner-owned businesses,” said Yash Patel, general partner at Titanium Ventures, who is joining Flex’s board of directors.
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