Flex raises $70 million as AI fintech valuation reaches about $1.2 billion

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Flex raises $70M AI fintech

Highlights

Flex raises $70 million in a B1 round led by Halo Fund, with its valuation doubling to about $1.2 billion within six months.
Company reports nine-figure annualized revenue run rate and fourfold year-over-year growth, planning to increase headcount from 110 to over 200 by year-end.
Flex launches Flex Global, enabling cross-border payments using stablecoins in over 100 countries and supporting 32 currencies for business owners.

Funding round and expansion plans

As reported by Reuters, Flex says it raises $70 million in a B1 funding round led by Halo Fund, a venture firm co-founded by Utah Jazz owner Ryan Smith and Accel partner Ryan Sweeney. The company does not disclose its valuation, but a person close to the deal says the round values the startup at about $1.2 billion, more than double its valuation six months earlier.

Flex says it has now raised $180 million in equity and $300 million in debt. Chief executive Zaid Rahman says the company is targeting what he calls “jumbo shrimps”, mid-sized businesses generating tens to hundreds of millions of dollars in annual revenue that are often overlooked by traditional fintech groups and mainly served by regional banks.

Rahman tells Reuters that the addressable market includes roughly 350,000 to 400,000 business owners in the U.S. managing about 40% of the country’s payroll. He adds that globally the segment includes about 3 million business owners managing 50% of the world economy.

Product push and fintech market impact

Flex positions itself as a single financial platform for business owners by combining private credit, business finance, personal finance and payment tools rather than focusing on a single task such as accounting or expense management. Its AI offerings include Beacon AI, which gives customers a weekly view of their business finances.

The company says it has onboarded a few thousand customers and is growing at roughly four times year over year with a nine-figure annualized revenue run rate. Flex says the new funding will support global expansion, higher marketing spend and hiring that lifts headcount to more than 200 by year-end from 110.

Separately, the company launches Flex Global on Tuesday, a service using stablecoins to move money across more than 100 countries in minutes and allowing business owners to hold 32 currencies. Returning investors in the latest round include Portage Ventures and Crosslink Capital.

Our earlier article on the NFIB Small Business Optimism Index highlighted a June rebound in U.S. small-business sentiment toward its long-run average, even as inflation remained the top concern for a growing share of owners. It also noted renewed fuel-price pressure after Middle East tensions pushed gasoline higher, alongside persistent hiring difficulties marked by elevated unfilled job openings and limited qualified applicants.

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