Flex, a Brex for business owners, has raised $25M at a $250M valuation

Flex, a company that provides personal finance software and payments infrastructure for business owners, has recently raised $25 million in equity funding and secured a $200 million credit facility, as reported exclusively to DailyTech.

The equity funding round was conducted at a valuation of just under $250 million. This comes after the company’s previous $20 million Series A funding round announced in September 2023.

Founded in 2022 by CEO Zaid Rahman, Flex transitioned from a construction platform (operating under the name Flexbase Technologies) to a fintech company tailored for business owners. The company emerged from stealth mode in September 2023 with a suite of financial products, including a business credit card and expense tracking solution. Flex now positions itself as “an all-in-one finance platform for mid-market business owners to streamline their financial management processes from revenue generation to personal spending,” according to Rahman.

Rahman highlights Flex’s focus on mid-market business owners who are also CEOs of their companies, distinguishing it from fintech giants like Ramp and Brex which target enterprises and venture-backed startups. He notes that many business owners struggle with managing both personal and business finances, leading to accounting challenges and cash flow issues. Flex aims to address this by providing a comprehensive financial ecosystem that simplifies financial management for business owners.

Flex serves as a “financial co-pilot” for numerous businesses and their owners, including companies like Shoreside Support, Freebird, and MOD Partners. Rahman explains that Flex’s platform consolidates all business and personal financial activities into a single dashboard, allowing users to differentiate between business and personal transactions within the app.

The average customer of Flex generates $25 million in revenue annually, with many clients switching from the American Express Centurion Card to Flex’s offerings. The company provides features such as AI underwriting, AI invoice processing, and expense management, automating bill payments and offering a 0% interest period of 60 days on all purchases made with its card.

The $25 million equity round was led by Titanium Ventures, with 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 raised $45 million in equity funding and secured $300 million in credit facilities, with the debt specifically allocated to its credit card product.

While specific revenue figures were not disclosed, Rahman shared that Flex exceeded $1 billion in annualized total payment volume (TPV) within 18 months of launching its card and bill pay automation product. The company is currently experiencing a 25% month-over-month growth rate, with Rahman projecting a revenue increase of fivefold in 2025.

As of the end of 2024, Flex had grown its team to 64 employees, up from 28 at the end of 2023. The company plans to utilize its new funding to expand its AI and B2B payments team in New York and San Francisco.

Yash Patel, general partner at Titanium Ventures and a new addition to Flex’s board of directors, commended Flex for targeting a segment of the B2B market often overlooked by other fintech players and large incumbents – owner-owned businesses.

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