NEW
YORK, July 18, 2024 /PRNewswire/ -- New York-based Coast, which offers a simple
and smart way for companies in the United
States to manage fuel and fleet spending, today announced it
has raised $40 million in new Series
B financing, led by ICONIQ Growth. The round included participation
from existing investors Accel, Insight Partners, Vesey Ventures,
and Avid Ventures, as well as new investors Thomvest.
Coast also announced a strategic investment from Synchrony, a
leading consumer financial services company delivering one of the
industry's most complete digitally-enabled product suites across
diverse sectors. The investment in Coast aligns with Synchrony's
presence in the aftermarket auto segment where it partners with
many top national tire, petrol, auto parts and maintenance
retailers like Discount Tire and Pep Boys.
ICONIQ Growth General Partner Yoonkee Sull has joined Coast's
board of directors as part of the new funding. The Series B brings
Coast's total equity financing to nearly $100M and comes months after it announced its
previous round of $92 million in debt
and equity.
For the nearly one million American businesses that collectively
operate around 40 million vehicles in their commercial fleets –
including field service businesses like HVAC, plumbing,
landscaping, pest control, construction, government fleets and
long-haul trucking – managing expenses in the field is a major
challenge.
Over the decades, a handful of incumbent payment solutions have
emerged to serve fleet-operating companies' needs with fuel cards,
to allow fleet managers to set field-specific controls, like
restricting purchases to only fuel products, or tracking expenses
on a per-vehicle basis. The fleet fuel payments on these
specialized cards add up to a staggering $120 billion annually in the US.
"We're thrilled to be partnering with ICONIQ Growth, a legendary
investor in fintech, and fleet and field services," said Coast
founder and CEO Daniel Simon.
"ICONIQ brings to bear not just their deep capital base but also
their rich experience in Coast's domains and expansive community,
which can drive partnerships and accelerate expansion for Coast's
fleet product."
Coast reimagines fleet payments, enabled by mobile technology
and state-of-the-art vehicle data and telematics. The company has
seen its revenue grow over ten times in the last 18 months.
Thousands of businesses are now using Coast, some with just a
handful of fleet cards, and others with more than 1,000 cards.
Surveyed customers saved an average of 9-10% on fuel bills and 16
hours of monthly administrative work when switching to Coast from
another fuel card or payment method.
"Companies like Coast do not come along every day. We are
incredibly impressed with Coast's proven traction, leadership, and
deep expertise in fintech," said Yoonkee Sull. "We believe Daniel
and team are using exceptional software to challenge incumbents in
a massive market and making a difference in hundreds of thousands
of American businesses. We are thrilled to partner with them on
their mission to simplify the day-to-day management of thousands of
fleets."
This month, Coast launched a first-of-its-kind mobile app that
eases the collection and verification of transaction data for fleet
payments, such as receipts, memos, and job codes, which can be
pushed to its customers' accounting systems. It has also expanded
the use of virtual cards, shared team budgets, and spend programs
to simplify back-office purchasing for its trades and
transportation business customers.
Building on their momentum, Coast has inked new partnerships
with BuildOps, Sheetz and 7-Eleven, adding to a growing list of
partners across retailers, fuel brands, and technology
providers.
Coast will use the new funding to accelerate its product and
partnership development, including expanding to other financial
services needs of its business customers, such as accounts payable
automation and bill payments, and adding to its growing list of
integration partners. The company will also continue to grow its
team, including at its newly established second headquarters in
Utah.
About Coast
Coast is re-imagining the trillion-dollar
US B2B card payments infrastructure, with a focus on the country's
500,000 commercial fleets, 40 million commercial vehicles, and many
million commercial drivers. Drivers, fleets, and the merchants that
serve them all increasingly demand modern digital payments
experiences and affordable and transparent financial services
products. Coast's mission is to deliver them at a transformational
scale and to improve working lives in one of the country's biggest
industry sectors. Coast is founded and led by Daniel Simon, who previously co-founded digital
payments platform Bread, which was acquired by Alliance Data
Systems for more than $500 million in
2020. For more information, visit https://coastpay.com/.
About ICONIQ Growth
ICONIQ Growth partners with
visionaries defining the future of their industries to transform
the world. Our investment platform and unique ecosystem helps
amplify our portfolio companies' success from early growth stage to
IPO and beyond. Our portfolio includes Adyen, Airbnb, Alibaba,
Alteryx, Automattic, BambooHR, Braze, Chime, Collibra, Coupa,
Datadog, Docusign, Gitlab, Marqeta, Miro, Procore, Red Ventures,
Relativity, ServiceTitan, Snowflake, Sprinklr, Truckstop, Uber,
Wolt, and Zoom, among others. For more information, please visit
https://www.iconiqcapital.com/growth.
About Synchrony
Synchrony (NYSE: SYF) is a premier
consumer financial services company delivering one of the
industry's most complete digitally-enabled product suites. Our
experience, expertise and scale encompass a broad spectrum of
industries including digital, health and wellness, retail,
telecommunications, home, auto, outdoor, pet and more. We have an
established and diverse group of national and regional retailers,
local merchants, manufacturers, buying groups, industry
associations and healthcare service providers, which we refer to as
our "partners." We connect our partners and consumers through
our dynamic financial ecosystem and provide them with a diverse set
of financing solutions and innovative digital capabilities to
address their specific needs and deliver seamless, omnichannel
experiences. We offer the right financing products to the right
customers in their channel of choice. For more information, visit
www.synchrony.com.
Media Contact:
Heather
Ripley
Ripley PR
865-977-1973
hripley@ripleypr.com
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SOURCE Coast