Coast secures $40 million series B amid market challenges

New York-based Coast, a financial services platform for transportation, has raised $40 million in Series B funding.

The funding round, led by ICONIQ Growth with participation from Accel, Insight Partners, Vesey Ventures, Avid Ventures, and new investor Thomvest, comes just four months after a $25 million venture round and $67 million in debt financing. Synchrony also made a strategic investment in Coast, aligning with its partnerships with national tire and auto parts retailers.

CEO and founder Daniel Simon told TechCrunch that Coast has experienced a tenfold increase in both annualized revenue and payment volume over the past 18 months, though he did not disclose specific figures.

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The company serves thousands of businesses in industries such as HVAC, plumbing, landscaping, and long-haul trucking, issuing over 100,000 fleet cards to date.

The Coast Series B Funding highlights rapid growth despite the downturn in the venture capital market since 2022. Coast compares itself to spend management firms like Ramp and Brex, offering expense management software and a commercial charge card for fleet operators.

Coast plans to use the new capital for product and partnership development, including accounts payable automation and bill payment services. The company recently launched a mobile app to help customers track receipts and verify transactions. Currently, Coast employs around 65 people, with plans to expand to 85 by the year’s end.

ICONIQ Growth General Partner Yoonkee Sull has joined Coast’s board as part of the funding round. The company has raised nearly $100 million in equity since its inception in late 2020.