Coast, a provider of streamlined financial management solutions for US companies managing fuel and fleet expenditures, has announced a successful funding round, raising $92 million. The round comprises $25 million in equity capital from existing investors, including BoxGroup, Avid Ventures, Accel, Insight Partners, and Better Tomorrow Ventures, along with new investor Vesey Ventures. Additionally, the company has secured $67 million in committed debt capital from Silicon Valley Bank and TriplePoint Capital.For the approximately one million American businesses operating around 40 million vehicles in commercial fleets, managing expenses on the field presents significant challenges. Over the years, a few dominant payment solutions have emerged to address the needs of fleet-operating companies with fuel cards, catering to various field-specific controls. The fleet fuel payments on these specialized cards amount to a substantial $120 billion annually in the US.Under the leadership of founder and CEO Daniel Simon, Coast redefines the fleet payments product category, leveraging mobile technology and advanced vehicle data and telematics.Coast’s software equips fleet managers with robust policies and controls customizable to the specific needs of different employees and vehicles in their fleets. Utilizing real-time information from employee drivers’ mobile devices and data from company vehicles’ onboard computers, the software authorizes or flags transactions. For instance, a commercial construction HVAC company’s fleet manager could receive an alert if a driver purchases unleaded gas while driving a company diesel vehicle, indicating potential misuse. The software can also automatically block transactions occurring far from the vehicle’s current GPS location or pre-approve one-time purchases of on-the-road supplies with an automated SMS workflow.Adam Rothenberg, Partner at BoxGroup, expressed admiration for Coast’s business execution and Daniel’s vision, emphasizing the importance of backing companies with strong unit economics.Coast has witnessed significant market adoption, with its business growing more than fivefold in 2023, serving thousands of businesses of varying sizes. Surveyed customers reported average savings of 9-10% on their fuel bills and a reduction of 16 hours in monthly administrative work upon switching to Coast from other payment methods.To bolster its momentum, Coast has forged partnerships with prominent fuel brands like 7-Eleven Fleet, Casey’s, RaceTrac, and EG America brands, as well as retailers like Discount Tire, offering enhanced discounts to Coast customers while fostering loyalty for these brands.Coast also announced a strategic collaboration with Visa to enhance its fleet offering, leveraging Visa’s expertise in digital payments.Veronica Fernandez, SVP and North America Head of Visa Commercial Solutions, expressed excitement about collaborating with Coast to deliver enhanced expense management solutions.Coast cards are issued by Celtic Bank, pursuant to a license from Visa U.S.A. Inc.With the fresh funding, Coast aims to focus on product development, expand its integration partners, and extend support for business expenses beyond fuel. Additionally, the investment will accelerate Coast’s go-to-market efforts, including the establishment of a second site in Salt Lake City.Coast’s CEO Daniel Simon envisions the company as the financial platform for the future of transportation and trades, poised to broaden its product reach and serve more fleet operators and drivers.Addie Lerner, Founder and Managing Partner at Avid Ventures, reiterated confidence in Coast’s trajectory, highlighting the team’s vision, execution capabilities, and market opportunity.Brian Foley, Head of Warehouse Lending and Relationship Management for SVB’s national fintech practice, affirmed SVB’s commitment to supporting Coast’s growth, citing its strong financial product and powerful software for fleet-operating businesses.About Coast: Coast is revolutionizing the US B2B card payments infrastructure, focusing on the country’s commercial fleets, vehicles, and drivers. With a mission to deliver modern digital payments experiences and transparent financial services products, Coast aims to improve working lives in one of the nation’s largest industry sectors. Founded and led by Daniel Simon, who previously co-founded digital payments platform Bread, acquired by Alliance Data Systems for over $500 million in 2020.
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By Ravi Kumar
