Coast, a New York-based fintech startup specializing in fleet and expense management solutions, has recently secured $40 million in a Series B funding round. This investment comes just four months after the company’s previous $25 million raise, demonstrating strong investor confidence in Coast’s growth and business model. The Series B round was led by ICONIQ Growth, with participation from existing investors Accel, Insight Partners, Vesey Ventures, and Avid Ventures, as well as new investor Thomvest. As part of this funding, ICONIQ Growth General Partner Yoonkee Sull has joined Coast’s board of directors.
Funding Details
Coast’s latest funding round, totaling $40 million, was spearheaded by ICONIQ Growth, a significant player in venture capital. Existing investors such as Accel, Insight Partners, Vesey Ventures, and Avid Ventures also contributed, alongside newcomer Thomvest. This recent infusion of capital brings Coast’s total equity financing to nearly $100 million. The company plans to use these funds to accelerate its product and partnership development, including expanding into other financial services such as accounts payable automation and bill payments, and growing its team, including establishing a second headquarters in Utah. This strategic move aims to enhance Coast’s market presence and revolutionize the fleet management industry with more efficient and cost-effective solutions.
Company Overview
Coast, founded in 2020 by Daniel Simon and Andrew Woolf, is a fintech startup based in New York City. The company specializes in providing innovative fleet and expense management solutions through its B2B card payments platform. Daniel Simon, who previously co-founded the digital payments platform Bread, leads Coast as its CEO. Bread was acquired by Alliance Data Systems for over $500 million in 2020. Coast aims to streamline fleet and fuel spending for commercial vehicles using advanced mobile technology and vehicle data.
Use of Funds
The $40 million from the recent Series B funding will be strategically used by Coast to accelerate its product and partnership development efforts. This includes expanding into additional financial services such as accounts payable automation and bill payments. The company also plans to grow its team and establish a second headquarters in Utah. These initiatives are aimed at enhancing Coast’s market presence and offering more comprehensive solutions to its business customers.
Market and Growth Potential
Coast operates in the expansive market of fleet and expense management, catering to over 500,000 commercial fleets and 40 million commercial vehicles in the United States. The company’s competitive advantage lies in its ability to integrate state-of-the-art vehicle data and telematics with mobile technology, providing a seamless and efficient solution for businesses. The recent funding and strategic investments underscore the strong investor confidence in Coast’s potential to revolutionize the fleet management industry with cost-effective and efficient solutions.
Strategic Investments and Partnerships
Coast has been actively forming strategic partnerships to enhance its product offerings and expand its market presence. One notable partnership includes a strategic investment from Synchrony, a prominent consumer financial services company. This partnership aims to integrate Coast’s fleet payment solutions with Synchrony’s wide array of financial products, providing businesses with comprehensive financial management tools. Coast is also looking to collaborate with other fintech companies to develop innovative solutions that address various financial service needs of its business customers.
Conclusion
The $40 million Series B funding round marks a significant milestone for Coast, enabling the company to accelerate its growth and expand its product offerings. With strong investor backing and strategic partnerships, Coast is well-positioned to revolutionize the fleet management industry by providing efficient and cost-effective solutions. As the company continues to innovate and expand, it is set to make a substantial impact on the market, offering comprehensive financial management tools to businesses across the United States.
