Mid-Sized Businesses Get a Financial Boost from AI Startup Flex
AI-driven financial services company Flex has just secured $60 million in funding. This cash injection comes from a Series B round led by Portage Ventures. Now valued at about $500 million, Flex has raised a total of $105 million to date.
Targeting Mid-Sized Businesses
Flex is focusing on mid-sized businesses, often called "jumbo shrimps". These are companies earning between $2 million and $100 million annually. Many fintech platforms ignore this group, leaving them to regional banks. Flex wants to change that by offering a comprehensive suite of financial tools.
Comprehensive Financial Solutions
Unlike other AI startups that focus on specific tasks like accounting or expense management, Flex bundles:
- Private credit
- Business finance
- Personal finance
- Payment tools
into one solution. The company's founder, Zaid Rahman, points out that mid-sized businesses often lack large finance teams. This makes Flex's all-in-one approach particularly valuable.
Overcoming AI Adoption Challenges
Despite the hype around AI, real-world adoption remains a challenge. A recent MIT study found that only about 5% of AI projects move beyond the pilot stage. Flex is trying to overcome this by ensuring its AI outputs are checked by financial experts. This approach has helped the company triple its payments volume to $3 billion in just 12 months.
Expanding into the Consumer Market
Flex is also diving into the consumer market with a new invite-only card called Flex Elite. This card aims to compete with the Amex Centurion, typically used by high-net-worth individuals. With the new funds, Flex plans to:
- Accelerate product development
- Expand its team
- Attract more clients
