Flex raises USD $60 million to expand fintech for business owners
Fintech platform Flex has secured USD $60 million in a Series B equity funding round, bringing its total equity raised to USD $105 million. The funding supports Flex's ongoing expansion in providing banking and personal finance services to high net worth business owners in the middle-market segment.
Funding and growth
The latest investment round was led by Portage, with several other venture and private equity firms participating. Flex has reported revenue growth of fourfold over the past year, and its annualised payments volume has increased from USD $1 billion to USD $3 billion. The company attributes this growth to an expanded suite of products aimed at businesses with revenues between USD $2 million and USD $100 million.
Target customers
Flex's approach is focused on middle-market companies managed by high net worth owners. This segment, which generates significant revenues but is often overlooked by other fintech solutions, collectively accounts for approximately 40% of American payroll. Flex aims to provide these business owners with a unified platform to manage both business and personal finances.
Product expansion
Flex is launching Flex Elite, an invite-only consumer card and membership that positions itself as a competitor to American Express Centurion. The card forms part of the company's push into personal finance, complementing its business banking, credit, payments, and expense management tools. Flex reports that customers now use an average of four or more products from its platform.
AI-driven operations
The fintech is embedding artificial intelligence agents across its suite of products. AI supports internal functions such as credit underwriting, cash management, and payment workflows, while also delivering customer-facing features like automated insights and expense management. Flex's model is designed to enable efficient operations with a lean workforce, supporting scalability as usage grows.
Private credit capabilities
The company operates a private credit arm that leverages AI underwriting to price risk and extend credit solutions tailored to the needs of its target customers. By consolidating multiple financial tools into a single platform, Flex aims to deepen relationships with its customers and drive greater adoption of its full range of services.
Market opportunity
The focus on middle-market business owners is supported by market trends indicating rising demand for consolidation of financial tools, integrated credit solutions, and unified management of business and personal finances. The company's expansion into personal finance addresses what it views as a gap in modern solutions for affluent individuals who often juggle multiple banking relationships and platforms.
"Our mission is to build the private bank ambitious business owners have always deserved. Middle-market business owners employ 40% of Americans, but the financial system has never been designed around their complex needs. Flex is the first platform that supports every step of their financial lives, from the moment they earn revenue to the moment they spend it personally. Unlike many of our FinTech peers who focus on saving large enterprises money, we focus on helping ambitious owners make more money," said Zaid Rahman, Founder and CEO, Flex.
Jake Bodanis, Partner at Portage, said, "Flex is building a category-defining financial institution. The company has proven that middle-market business owners are both massively underserved and extremely valuable customers when given the right financial infrastructure. Flex's hypergrowth and best in class capital efficiency speaks to how powerful this model is."