Flex, a fintech that lets business owners manage their personal and business cash flow in one place, raised $25 million in equity funding and secured a $200 million credit facility.
The company also announced it surpassed $1 billion in total payment volume in 18 months.
The equity funding was raised on a valuation of around $250 million and was led by Titanium Ventures. Yash Patel, general partner at Titanium Ventures, will join Flex's board of directors. Companyon Ventures, Florida Funders, MS&AD Ventures, AAF Management and First Look Partners joined in the equity funding and Victory Park Capital provided the credit facility.
"Business owners tend to comingle their personal and business expenses, deposits and payments, leading to accounting reconciliation issues and cash flow gaps," said Zaid Rahman, Flex's founder and chief executive officer. "Our growth validates the demand from business owners for an all-in-one ecosystem that simplifies their finances."
Flex's last fundraising round was its Series A of $20 million in September 2023. Founded in 2022, the B2B company emerged from stealth in September 2023 with a business credit card and expense tracker. It now offers a comprehensive suite of financial products including payment automation, expense management, credit cards and banking.
Patel said customer satisfaction for the bank drove their investment interest and its niche.
"We were thoroughly impressed with the customer love for Flex in our diligence," Patel said. "Flex has found a segment of the large B2B market overlooked by both innovators in B2B fintech and large incumbent banks: super premium business owners."
Flex itself does not have a banking license and services are provided through its partner Thread Bank. Its commercial credit card is issued by Patriot Bank, N.A.
Sympera AI, an agentic AI fintech founded by Personetics founder David Sosna, seeks to offer AI tools to banks looking to scale their relationship banking.
Omar Darwazah, managing director and general partner at AAF Management, wrote in a
"Flex is building the Ramp and Brex of mid-market businesses that are run by their own owners rather than enterprises or venture-backed companies," Darwazah said. "The company has already surpassed $1 billion in annualized total payment volume in the last 18 months, is growing 25% month-on-month and expected to [increase fivefold] in 2025."
Rahman said the fintech's edge is in the comprehensive nature of its offerings unlike others which provide targeted solutions for individual issues. This is especially helpful for businesses that do not have an in-house finance team and rely on Flex's AP [accounts payable] automation product for invoices and expense management for automating expenses.
"Our product simplifies the input required from business owners and reduces the burden of managing payment scheduling, which payment methods to disburse from and which accounts to collect money into," Rahman said.
The company said it intends to use the capital to invest in its AI-driven AP automation and work to bolster its consumer side of the business focused on managing personal finances for business owners.
Kinan Hayani, partner at Victory Park Capital, said they see value in its services.
"Flex's ecosystem of financial products, which provide flexible and cost-effective working capital, will help meet a clear need for business owners," Hayani said. "We believe in Flex's mission to provide efficient, streamlined tools to help owners more easily manage their finances and ultimately expand their businesses."
