Fintech Newcomer Coast Secures $40M in Funding Merely Four Months Following a $25M Investment Round

Coast, an innovative company heralding a new era of financial services tailored for transportation’s future, has recently garnered $40 million in a Series B funding round. This significant financial milestone arrives merely four months following a previous announcement of $25 million in venture funds alongside $67 million in debt financing, a development exclusively shared with TechCrunch.

While securing back-to-back funding was a frequent occurrence during the investment boom of 2021, it has become a rarity amidst the venture capital slowdown of 2022, underscoring the significance of Coast’s recent achievement.

Positioned in New York, Coast puts itself in the same category as expense management giants Ramp and Brex, catering specifically to fleet operators and their staff with its financial software. With its innovative commercial charge card tailored for vehicle fleet operations, Coast has identified and capitalized on a unique market niche, leading to substantial growth. CEO Daniel Simon expressed to TechCrunch an impressive tenfold increase in the company’s annual revenue and payment volume over the past 18 months, although specific revenue metrics remain undisclosed.

The company’s customer base spans thousands of service industry businesses, including those in HVAC, plumbing, landscaping, pest control, construction, government fleets, and long-haul trucking. The firm boasts issuing over 100,000 cards, catering to a diverse range of fleet sizes.

The Series B funding round was led by ICONIQ Growth, with continued support from previous investors Accel, Insight Partners, Vesey Ventures, and Avid Ventures, and the addition of new investor Thomvest. Additionally, Synchrony made a strategic investment in Coast, further aligning the company with leading national retailers in the tire and auto parts sector, such as Discount Tire and Pep Boys.

With the latest funding, Coast has successfully raised close to $100 million in equity since it was founded in late 2020. Although the current valuation of the company was not disclosed by Simon, the participation of ICONIQ Growth General Partner Yoonkee Sull on the fintech startup’s board was confirmed.

Simon highlighted the importance of securing additional capital to meet their ambitious growth targets, especially in the unpredictable capital markets environment.

Among small to mid-sized businesses, Coast continues to exhibit robust growth, according to Simon. He also noted significant advancements in the adoption of their expense management solutions for non-fuel expenses, with such transactions now comprising over 30% of total spending.

Coast generates revenue through interchange fees collected from merchants when customers use the Coast card for purchases and by charging a modest $4 monthly subscription fee per card for active users.

Recently, Coast introduced a mobile application designed to simplify receipt tracking, job code matching, and transaction verification for its users. With the injection of new funds, Coast aims to further enhance its product offerings and expand its partnerships, including ventures into accounts payable automation and bill payment services.

Currently, Coast has expanded its team to 65 employees from 50 the previous year and is on track to increase its workforce to approximately 85 by the end of the year.

For more fintech insights and updates, consider subscribing to TechCrunch’s Fintech newsletter.

Have a tip? Reach out via email at maryann@techcrunch.com, send a message on Signal at 408.204.3036, or contact the TechCrunch team at tips@techcrunch.com. For secure communication, visit our contact page, which includes SecureDrop (follow the instructions provided) and links to our encrypted messaging services.