The competition in the expense management industry is fierce, with well-funded players such as Brex, Ramp, and Navan vying for market dominance.
While most companies in this space target tech startups and large corporations, four-year-old contender
Coast
is focusing on businesses with “real-world” field personnel and fleets to manage, such as trucking companies, plumbers, HVAC businesses, and last-mile delivery companies.
Founded by Daniel Simon in late 2020, Coast positions itself as the “modern financial services platform for the future of transportation,” offering expense management solutions tailored to fleet operators and their employees. This unique approach has proven successful, with Coast experiencing a significant 550% increase in annualized revenue and payment volume growth in 2023.
The company recently secured an additional $25 million in venture capital and $67 million in debt financing, with BoxGroup, Avid Ventures, Accel, and Insight Partners leading the equity raise.
Coast’s focus on fleet operators in service industries like HVAC, plumbing, landscaping, and long-haul trucking sets it apart from traditional expense management providers. The company emphasizes detailed visibility into employees’ spending, real-time data integration with vehicle telematics, and enhanced security and convenience for both drivers and managers.
Niche Focus
Unlike legacy fleet and fuel credit card providers, Coast offers modern solutions tailored to the evolving needs of service industry fleets. The company’s revenue model includes earning interchange fees from merchant transactions and charging a flat subscription fee per active card.
Coast’s partnership with major brands like 7-Eleven, RaceTrac, and Discount Tire provides additional value to customers through rebates and rewards for purchases made using the Coast card.
Doubling Down
Avid Ventures sees Coast as a strategic investment due to its traction with mid-market fleet customers and innovative fleet-specific features. The company’s potential for high margin revenue in an underserved market segment makes it an appealing opportunity for investors.
With the new capital infusion, Coast plans to expand its product offerings and financial services for fleet operators. The company is also focused on hiring new talent to support its growth.
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