Flex reaches $1.2bn valuation on mid-market finance push
Flex has doubled its valuation to $1.2 billion after a $70 million funding round, signalling strong investor appetite for AI-driven platforms targeting the underserved mid-sized corporate market.
Flex, a three-year-old artificial intelligence finance company, has raised $70 million in a Series B1 round led by Halo Fund. A person close to the deal said the financing values the startup at roughly $1.2 billion, more than doubling its valuation from just six months ago.
The rapid repricing is underpinned by strong top-line momentum. Flex is generating a nine-figure annualized revenue run rate and growing its customer base roughly four-fold year-over-year, having onboarded a few thousand businesses to date.
The company targets mid-sized enterprises earning tens to hundreds of millions in annual revenue, a demographic CEO Zaid Rahman calls "jumbo shrimps." This segment is largely neglected by consumer-focused fintechs and regional banks, yet represents a massive economic engine.
"In the U.S., there are maybe 350,000 to 400,000 business owners that manage 40 per cent of America's payroll," Rahman said. "Globally, it's about 3 million business owners that manage 50 per cent of the global economy. So, there's a very large opportunity to be their kind of singular financial home."
Rather than building single-purpose tools for accounting or expenses, Flex bundles private credit, business and personal finance, and payments into one platform. It deploys AI agents, including Beacon AI, to provide owners with automated weekly financial overviews.
Stablecoin expansion
Alongside the funding, Flex launched Flex Global, a stablecoin-powered service for cross-border transactions. The product allows businesses to move money across more than 100 countries in minutes and hold balances in 32 different currencies. This directly addresses a major friction point for mid-sized importers and exporters.
The capital structure reflects the scale of this ambition. Flex has now raised $180 million in total equity, alongside $300 million in debt to capitalize its credit offerings. Halo Fund, co-founded by Utah Jazz owner Ryan Smith and Accel partner Ryan Sweeney, led the latest equity round, with Portage Ventures and Crosslink Capital returning as investors.
The startup intends to deploy the new capital to scale its global footprint and increase marketing. It also plans to more than double its headcount from 110 to over 200 by year-end.
