Small Business News
Small Business Banking Platform Flex Raises $225 Million
A FinTech company that enables small business owners to manage their business and personal finances together has raised a new round of funding.
About the round:
Flex has just revealed that it has raised $225 million. This amount includes a $25 million Series A round as well as a $200 million credit facility from Victory Park Capital. The equity portion was led by Titanium Ventures with Companyon Ventures, Florida Funders, MS&AD Ventures, AAF Management, and First Look Partners also participating.
According to the company, these funds will help it to accelerate development on its payment ecosystem, including its AP Automation feature. The funding round also comes as Flex recently surpassed $1 billion in total payment volume. This milestone was reached in just 18 months.
About Flex:
The Flex platform is built to allow business owners to manage both their business expenses and personal finances in one place. Among its products are business banking, a net-60 rewards credit card, a global payment platform, and more.
What they’re saying:
Commenting on the idea behind Flex, the company’s founder and CEO Zaid Rahman explained, “Business owners tend to co-mingle their personal and business expenses, deposits and payments, leading to accounting reconciliation issues and cashflow gaps. Our growth validates the demand from business owners for an all-in-one ecosystem that simplifies their finances.”
Rahman added, “With Flex, they can manage their entire financial lives through one premium platform, from the moment they generate business revenue to the moment they spend their earnings personally.”
Meanwhile, Titanium general partner Yash Patel — who will also join Flex’s Board of Directors as part of the deal — said of the firm’s investment in the company, “We were thoroughly impressed with the customer love for Flex in our diligence. 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.”
Additionally, Victory Park Capital partner Kinan Hayani stated, “Flex’s ecosystem of financial products, which provide flexible and cost-effective working capital, will help meet a clear need for business owners. We believe in Flex’s mission to provide efficient, streamlined tools to help owners more easily manage their finances and ultimately expand their businesses.”
My thoughts:
As someone who technically has his own business, I can definitely attest to mixing my personal and business expenses. In turn, I can understand how someone with a “real” small business would benefit from a tool that allows them to continue this practice without repercussion. Therefore, I not only see Flex as a possible solution for small business owners but can also understand why investors are showing an interest in this FinTech startup.
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