Flex Raises $25M to Empower Business Owners

Flex Secures $25 Million Equity Funding and $200 Million Credit Facility

Flex, a company providing financial software and payment solutions for business owners, has successfully raised $25 million in equity financing. Alongside this, they have also secured a $200 million credit facility, as exclusively reported to TechCrunch.

Recent Funding and Valuation

The equity investment was completed at a valuation of “just below $250 million.” This follows a previous $20 million Series A funding round announced in September 2023.

Company Evolution and Focus

Founded in 2022 by Zaid Rahman, Flex originated as a construction platform – initially known as Flexbase Technologies – before transitioning into a dedicated fintech solution for business owners. The company officially launched in September 2023, introducing a business credit card and expense tracking system.

Today, Flex positions itself as a comprehensive financial platform designed for mid-market business owners, managing finances from revenue generation to personal expenditure, according to Rahman.

Competitive Landscape

Rahman draws parallels between Flex’s offerings and those of established fintech companies like Ramp and Brex. However, Flex specifically targets mid-market business owners who also serve as CEOs of their respective companies, differentiating itself from solutions geared towards larger enterprises or venture-backed startups.

Addressing Financial Challenges

“A common issue for business owners is the blending of personal and business finances, leading to difficulties in accounting reconciliation and potential cashflow problems,” Rahman stated. “Our growth demonstrates a clear demand for an integrated ecosystem that streamlines financial management.”

Client Base and Services

Flex functions as a “financial co-pilot” for numerous businesses and their owners, including Shoreside Support, a logistics provider; Freebird, a men’s grooming brand; and MOD Partners, a construction firm.

“The platform consolidates both business and personal financial activities into a single dashboard,” Rahman explained to TechCrunch. “Users can categorize transactions as either business or personal directly within the app, a process that presents significant software and compliance complexities.”

Customer Profile and Adoption

The average Flex customer generates approximately $25 million in annual revenue. Rahman reports that many customers have transitioned from the American Express Centurion Card, often referred to as the “Black Card.”

Flex provides features such as AI-powered underwriting, automated invoice processing, and expense management, which automatically schedules bill payments for owners.

The company’s card also offers a 0% interest rate for a period of 60 days on all purchases.

Investment Details

Titanium Ventures spearheaded Flex’s $25 million equity round, with contributions from Companyon Ventures, Florida Funders, MS&AD Ventures, AAF Management, and First Look Partners. Victory Park Capital provided the $200 million credit facility.

To date, Flex has raised a total of $45 million in equity and secured $300 million in credit facilities, with the debt exclusively supporting its credit card program, as indicated by Rahman.

Revenue Model

Flex generates revenue primarily through transaction and interchange fees associated with its cards and bill payment services, as well as from deposit products like banking solutions. A subscription membership model supports its personal platform.

While specific revenue figures were not disclosed, Rahman informed TechCrunch that the company exceeded $1 billion in annualized total payment volume (TPV) within 18 months of launching its card and bill pay automation product. Currently, the company is experiencing 25% month-over-month growth, and Rahman anticipates a “5x” increase in revenue in 2025.

Growth and Future Plans

As of the end of 2024, Flex employed 64 individuals, an increase from 28 at the close of 2023. The newly acquired capital will be used, in part, to expand its AI and B2B payments teams in New York and San Francisco.

Industry Perspective

“Flex has identified a neglected segment within the substantial B2B market – businesses owned and operated by their owners,” stated Yash Patel, general partner at Titanium Ventures, who will be joining Flex’s board of directors. “This represents a significant opportunity within both the B2B fintech landscape and among established industry players.”

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