Coast raises $40m Series B to boost modern fleet payments

By Gloria Methri

New York-based Coast, which offers a simple and smart way for US companies to manage fuel and fleet spending, has raised $40 million in new Series B financing. The round, led by ICONIQ Growth, 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 consumer financial services firm Synchrony. The investment aligns with Synchrony’s presence in the aftermarket auto segment, where it partners with many top national tires, petrol, auto parts and maintenance retailers like Discount Tire and Pep Boys.

The Series B brings Coast’s total equity financing to nearly $100 million and comes months after it announced its previous round of $92 million in debt and equity.

“We are thrilled to be partnering with ICONIQ Growth, a legendary investor in FinTech, and fleet & 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. Thousands of businesses are now using Coast, some with just a handful of fleet cards and others with more than 1,000 cards.

This month, Coast launched a 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 spending programs to simplify back-office purchasing for its trades and transportation business customers.

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.