Key facts
- Flex, an AI startup targeting mid-sized businesses, raised $70 million in a new funding round.
- The funding round, led by Halo Fund, valued Flex at approximately $1.2 billion.
- This valuation more than doubles Flex's valuation from six months ago.
- The company has now raised a total of $180 million in equity and $300 million in debt.
- Flex launched Flex Global, a service enabling cross-border money movement using stablecoins.
- The startup plans to use the new funds for global expansion, marketing, and doubling its workforce.
Flex, an AI startup aiming to provide comprehensive banking solutions for mid-sized businesses, has secured $70 million in a funding round led by Halo Fund. This investment more than doubles the company's valuation to approximately $1.2 billion, up from its valuation six months prior. The company has now raised a total of $180 million in equity and $300 million in debt.
Flex targets what CEO Zaid Rahman calls "jumbo shrimps" – businesses earning tens to hundreds of millions of dollars annually that are often overlooked by larger fintechs and primarily served by regional banks. Rahman stated that this segment represents about 350,000 to 400,000 business owners in the U.S. managing 40% of the nation's payroll, and globally, approximately 3 million business owners managing 50% of the global economy.
Unlike competitors focusing on single financial tasks, Flex offers an integrated platform that bundles private credit, business finance, personal finance, and payment tools. It utilizes AI agents, such as Beacon AI, to provide business owners with weekly financial insights.
The company reports having a few thousand customers and is experiencing roughly four-fold year-over-year growth with a nine-figure annualized revenue run rate. The newly raised capital will be allocated towards global expansion, increased marketing efforts, and more than doubling its workforce to over 200 employees by the end of the year.
In parallel with the funding announcement, Flex launched Flex Global. This new service leverages stablecoins to facilitate money transfers across more than 100 countries within minutes and allows business owners to hold funds in 32 different currencies.