Coast Secures $40 Million in Series B Investment

Coast, a financial services platform catering to the future of transportation, has successfully raised $40 million in Series B funding. This achievement follows a previous $25 million venture round and $67 million in debt financing, demonstrating the startup's rapid growth and strong investor confidence.

• This latest investment comes amid a challenging VC market, making Coast's success even more notable.
• Back-to-back fundraises were prevalent in 2021, but have become less common in the wake of the 2022 VC downturn.

Coast: A Fintech Solution for Fleet Expense Management

Coast positions itself as a competitor to leading fintech companies like Ramp and Brex, focusing on providing expense management software tailored specifically for fleet operators and their employees.

• The company offers a commercial charge card designed for businesses operating vehicle fleets, a niche that has proven successful for Coast.
• In the past 18 months, Coast has experienced significant growth, reporting a 10x increase in annualized revenue and payment volume.

Coast's Customer Base and Market Reach

Coast has garnered thousands of customers across various service industries, including HVAC, plumbing, landscaping, pest control, construction, government fleets, and long-haul trucking.

• The company caters to businesses with varying fleet sizes, ranging from those with a handful of cards to those with over 1,000.
• To date, Coast has issued over 100,000 cards, signifying its growing presence within the fleet management sector.

Series B Funding and Investor Participation

ICONIQ Growth spearheaded the Series B funding round, with participation from existing investors such as Accel, Insight Partners, Vesey Ventures, and Avid Ventures. Thomvest also joined as a new investor.

• Synchrony, a financial services giant, made a strategic investment of an undisclosed amount, reflecting the company's commitment to partnerships with major tire and auto parts retailers like Discount Tire and Pep Boys.
• Yoonkee Sull, General Partner at ICONIQ Growth, has joined Coast's board of directors as part of the investment.

Strategic Investment and Future Growth Plans

Coast aims to leverage the new capital to propel its product and partnership development, with a focus on expanding its offerings to include accounts payable automation and bill payment services.

• The company plans to expand its employee base from 65 to 85 by the end of the year, further supporting its growth ambitions.
• Coast's business model involves earning interchange fees from merchants and charging a flat subscription fee per actively used card.

Coast's Mobile App and Future Expansion

Coast has recently launched a mobile app to enhance its user experience, facilitating receipt tracking, job code matching, and transaction verification.

• The company continues to see strong growth among small and mid-sized businesses, particularly in non-fuel use cases, which now account for over 30% of spend.