Flex, an AI finance startup, raised $70 million in a funding round led by Halo Fund, a person close to the deal said on Tuesday, more than doubling its valuation to about $1.2 billion in six months. The company targets the banking needs of mid-sized business owners who sit between the focus of traditional fintechs and large banks.
The round, labeled a B1, brings Flex's total equity raised to $180 million, alongside $300 million in debt. CEO Zaid Rahman calls these businesses "jumbo shrimps" - companies with tens to hundreds of millions of dollars in annual revenue that are often served by regional banks. The new valuation was not disclosed by the company.
"In the U.S., there are maybe 350,000 to 400,000 business owners that manage 40% of America's payroll. So that's sort of in that segment," Rahman told Reuters. "Globally, it's about 3 million business owners that manage 50% of the global economy. So, there's a very large opportunity to be their kind of singular financial home."
Bundling services and AI agents
Flex sets itself apart by combining private credit, business finance, personal finance, and payment tools into a single platform. Its AI agents, including Beacon AI, give owners a weekly read on their business finances. This approach reflects a broader wave of AI for Finance tools that automate insights once reserved for human analysts.
The company said it has "a few thousand customers onboarded" and is growing roughly four-fold year-over-year, with a nine-figure annualized revenue run rate. Returning investors Portage Ventures and Crosslink Capital also joined the round.
Going global with stablecoins
Flex will use the new funds to expand internationally, increase marketing, and more than double its headcount to over 200 by year-end from the current 110. On Tuesday, the company also launched Flex Global, a service that uses stablecoins to move money across more than 100 countries in minutes. Business owners can hold 32 currencies within the platform.
Why this matters for finance professionals
The rapid growth of a platform like Flex signals that mid-market business owners are willing to consolidate financial services with AI-driven providers, a shift that could pressure regional banks and reshape product expectations. Finance professionals evaluating new tools should watch how stablecoin-based cross-border payments and AI-generated financial insights reduce friction for clients that have long been underserved.
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