Flex, a fintech company offering personal finance software and payments infrastructure for business owners, has raised $25 million in equity funding and secured a $200 million credit facility, the company exclusively told TechCrunch. The equity funds were raised at a valuation of "just under $250 million," with the company's last funding round being a $20 million Series A announced in September 2023.

Flex was founded in 2022 by CEO Zaid Rahman, initially as a construction platform called Flexbase Technologies. The company shifted its focus to fintech for business owners and came out of stealth in September 2023 with a business credit card and expense tracking product. Today, Flex markets itself as "an all-in-one finance platform for mid-market business owners to manage their finances from the time the owner makes revenue, to the time they personally spend it."

Rahman likens Flex's offering to that of fintech giants Ramp and Brex, but with a focus on mid-market business owners who are also CEOs of their companies, rather than enterprises or venture-backed startups. According to Rahman, business owners tend to co-mingle their personal and business expenses, deposits, and payments, leading to accounting reconciliation issues and cash flow gaps. Flex's growth validates the demand from business owners for an all-in-one ecosystem that simplifies their finances.

Flex serves as more of "a financial co-pilot" for thousands of businesses and their owners, including Shoreside Support, a logistics company; Freebird, a male grooming company; and MOD Partners, a construction business. The platform allows business owners to manage their finances in a single dashboard, deciding which transactions are business-related and which are personal. This complexity is addressed through software and compliance measures.

The average Flex customer generates $25 million in revenue per year, with many having switched from the American Express Centurion Card, commonly known as the "Black Card." Flex offers features like AI underwriting, AI invoice processing, and expense management, which automatically ingests and schedules bill payments for owners. The company's card also offers 0% interest for 60 days on all purchases.

Titanium Ventures led Flex's $25 million equity round, which included 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 secured $45 million in equity and $300 million in credit facilities, with the debt exclusively funding its credit card offering.

Flex primarily generates revenue from transaction and interchange fees associated with its cards and bill pay products, as well as deposit products such as banking. The company's personal platform operates on a subscription membership model. While Rahman declined to reveal hard revenue figures, he shared that Flex surpassed $1 billion in annualized total payment volume (TPV) in 18 months after launching its card and bill pay automation product. The company is currently growing 25% month-over-month and expects to grow revenue by "5x" in 2025.

As of the end of 2024, Flex had 64 employees, up from 28 at the end of 2023. The company plans to utilize its new capital to build out an AI and B2B payments team in New York and San Francisco. Yash Patel, general partner at Titanium Ventures, who is joining Flex's board of directors, noted that Flex has found a segment of the large B2B market ignored by both innovators in B2B fintech and large incumbents — owner-owned businesses.

The funding and credit facility will enable Flex to further expand its offerings and support more mid-market business owners in managing their finances. With its unique approach and growing customer base, Flex is poised to make a significant impact in the fintech industry.