Fintech startup Coast raises $40M in funding led by ICONIQ Growth to help companies manage fleet expenses

Over the past decade, the cost of traditional fuel cards has skyrocketed, presenting a significant challenge for nearly one million American businesses managing around 40 million vehicles in their commercial fleets.

Enter Coast, a New York-based fintech startup that’s transforming how U.S. companies manage fuel and fleet spending. With its innovative, user-friendly software, Coast is revolutionizing expense management by offering enhanced security and greater visibility.

Today, Coast announced it has secured a $40 million Series B funding round led by ICONIQ Growth, with participation from new investor Thomvest and existing backers Accel, Insight Partners, Vesey Ventures, and Avid Ventures. This fresh capital injection comes on the heels of Coast’s impressive revenue growth, which has surged over 10x in the past 18 months.

With the new funding, Coast plans to accelerate product and partnership development, expand its offerings to include accounts payable automation and bill payments, and grow its team, particularly at its newly established second headquarters in Utah.

In a strategic move, Coast also welcomed an investment from Synchrony, aiming to strengthen Synchrony’s presence in the Aftermarket Auto segment. Additionally, Yoonkee Sull, General Partner at ICONIQ Growth, will join Coast’s board of directors.

This Series B round brings Coast’s total equity financing to nearly $100 million, following a previous round of $92 million in debt and equity. Coast’s innovative approach has already yielded tangible benefits for its customers, reducing fuel bills by an average of 10% and saving an average of 16 hours of monthly administrative work.

While the expense management space is crowded with well-funded players like Brex, Ramp, and Navan, Coast is carving out its niche by targeting a specific customer base: American businesses operating large commercial fleets, including HVAC, plumbing, landscaping, pest control, construction, government fleets, and long-haul trucking.

Coast Fleet Card

Traditional fuel card solutions, though established, have become outdated. Coast’s modern alternative addresses the $120 billion annual fleet fuel payments market in the US with more efficiency and transparency.

Leveraging mobile technology and advanced vehicle data/telematics, Coast has built a smart financial operating system tailored for fleets. Its vertical-specific Visa fuel card simplifies expense tracking, card issuance, and bookkeeping for fleet managers.

“We’re thrilled to partner with ICONIQ Growth, a legendary investor in fintech and fleet services,” said Daniel Simon, Coast’s founder and CEO. “ICONIQ brings not only substantial capital but also extensive experience in our domains, which will drive partnerships and accelerate our expansion.”

Thousands of businesses have adopted Coast, utilizing anywhere from a few fleet cards to over a thousand. Customers report significant savings on fuel bills and administrative time, highlighting Coast’s impact.

Yoonkee Sull of ICONIQ Growth praised Coast’s traction and leadership: “We are incredibly impressed with Coast’s proven results and exceptional software. Daniel and his team are poised to disrupt a massive market and positively impact countless American businesses.”

In a bid to enhance fleet payment management, Coast recently launched a groundbreaking mobile app that streamlines the collection and verification of transaction data, integrating seamlessly with customers’ accounting systems. The company has also introduced virtual cards, shared team budgets, and spend programs to simplify back-office purchasing.

Founded in 2020 by Daniel Simon, who previously co-founded digital payments platform Bread, Coast is modernizing the US B2B card payments infrastructure. By focusing on the needs of commercial fleets, Coast aims to deliver a transformative digital payments experience that meets the demands of today’s drivers, fleets, and merchants.

Coast continues to build momentum, forging new partnerships with BuildOps, Sheetz, and 7-Eleven, adding to a growing list of collaborators across retailers, fuel brands, and technology providers.