Coast has secured $35 million in new equity funding to scale its financial platform designed for companies operating in the 'physical economy.' Thomvest Ventures led the funding round.
Existing investors participated in the round, including ICONIQ Growth, Accel, Insight Partners, Better Tomorrow Ventures, Avid Ventures, Vintage Investment Partners, Colle Capital, Synchrony, RXR, and The Fintech Fund. The New York-based fintech company announced plans to use the capital to grow its customer base.
The funds will be directed towards developing AI-driven expense automation, as well as expanding Bill Pay and Accounts Payable offerings. These steps support Coast's goal of becoming a more comprehensive financial operating system.
Founder and CEO Daniel Simon noted that many service-sector businesses still lack financial tools tailored to their specific operations. Companies in the physical economy often manage expenses related to employees, job sites, suppliers, and vehicles, but standard banking products and corporate cards rarely provide the necessary level of control for such transactions.
Furthermore, there is a growing need for skilled tradespeople. For instance, data shows that HVAC engineer vacancies have increased by nearly 78% since 2022, and demand for electricians, welders, and construction specialists has risen by 30%. Coast initially started by issuing fuel cards for business parks.
Over time, the company expanded its services to include corporate cards, expense management, and supplier payments. Its platform serves industries such as construction, HVAC, plumbing, landscaping, pest control, solar energy, oil and gas, utilities, and others, and it can integrate with accounting systems.
The new funding will be used for investments in AI-powered expense automation. Coast will also expand its Bill Pay and Accounts Payable features to collect supplier invoices concurrently with card transactions, giving business owners a more complete view of expenses.
Financial teams will be able to use a single platform to manage employee expenses, supplier invoices, and accounting processes. Coast collaborates with companies providing fleet and field service management technologies. Through integrations with Samsara and Fleetio, operators can track vehicle locations, driver IDs, and odometer readings. This data helps identify unusual purchases; for example, the system can flag fuel transactions that do not match the vehicle's location. Operators can also deactivate cards without leaving the existing fleet management software, and the company directs drivers toward more efficient purchasing options.
This latest funding allows Coast to extend its offering beyond just fuel and parking payments. The planned products aim to consolidate procurement, supplier payments, expense control, and accounting workflows. The company did not disclose its valuation in the announcement.
Participation from Intuit Ventures may also help strengthen ties with financial software used by small businesses. Coast's integration strategy focuses on embedding within existing operational systems rather than requiring customers to replace them. Competition remains a significant challenge. While Coast's focus on field operations gives it a clear market, sustained growth will depend on the adoption and execution of its plans. The newest funding will help determine the pace of customer base expansion and delivery of planned products.