US fintech Coast bags $40m Series B for product, partnership and team expansion
Coast, a New York-based card and expense management solution provider for fleet-operating businesses, has raised $40 million in a Series B funding round led by ICONIQ Growth.
Fleet-focused fintech Coast raises $40m Series B
As part of its round leadership, ICONIQ Growth has installed its general partner, Yoonkee Sull, on Coast’s board of directors.
Also participating in the raise were Accel, Insight Partners, Vesey Ventures and Avid Ventures – all of which previously supported Coast’s $92 million raise in March – alongside new investors Thomvest and Synchrony.
This latest round of funding brings Coast’s total equity financing to just shy of $100 million, four years after its inception in 2020 by CEO Daniel Simon, who previously co-founded digital payments platform Bread prior to its acquisition by Alliance Data in 2020.
The fintech says it seeks to mitigate the “major challenge” of expense management for the nearly one million businesses in the US that operate vehicle fleets.
To achieve this, it operates an expense management platform that enables fleet managers to authorise and track transactions for fuel. It complements this remit with B2B fuel cards, issued by Celtic Bank, alongside newly-launched mobile capabilities, virtual cards, spend programmes and shared team budget functions.
Coast claims the expansion of its product line has resulted in 10-fold revenue growth over the last 18 months, with “thousands of businesses” tapping its services to save “an average of 9-10% on fuel bills and 16 hours of monthly administrative work”.
The fintech says it will apply its latest financing to “accelerate its product and partnership development” with an eye for “expanding to other financial services needs of its business customers”, hinting at the ascent of automated accounts payable and bill payment functions.
On top of this, it will also look to “grow its team”, which according to LinkedIn now has over 100 employees. Additionally, the company is set to establish a second headquarters in Utah.
