Coast, a startup providing innovative solutions for fleet management, has secured $92 million in new funding for driving operational efficiency and fostering a culture of innovation in the industry.
This funding round comprises $25 million in equity capital led by existing investors, including BoxGroup, Avid Ventures, Accel, Insight Partners, and Better Tomorrow Ventures. New investor Vesey Ventures is joining the fray. Additionally, Coast has secured $67 million in committed debt capital from Silicon Valley Bank and TriplePoint Capital.
“Coast is the financial platform for the future of transportation and the trades. We are building a holistic expense management and finance platform for fleet-operating businesses. We’re now well-positioned to expand our product and get it in the hands of more fleet operators and drivers,” said founder and CEO Daniel Simon.
Revolutionizing Fleet Management
Coast’s innovative approach addresses the challenges faced by nearly one million American businesses operating approximately 40 million vehicles in commercial fleets. These businesses, ranging from field service operations like HVAC, plumbing, landscaping, pest control, construction, government fleets, and long-haul trucking, encounter significant hurdles in managing expenses effectively.
Traditional payment solutions have emerged to cater to these needs, but Coast is reimagining this space through mobile technology and advanced vehicle data and telematics.
“This recent investment makes Coast one of the largest positions in Avid’s first fund, reflecting our excitement in Coast’s trajectory towards reshaping the industry. The team and market opportunity, combined with the company’s best-in-class unit economics, rapidly evolving product suite, and growing traction with larger fleets, reinforce our confidence,” said Addie Lerner of Avid Ventures.
Empowering Fleet Managers
Led by founder and CEO Daniel Simon, Coast’s software provides fleet managers with robust policies and controls tailored to diverse job requirements. By leveraging real-time information from employee drivers’ phones and onboard vehicle computers, Coast enables managers to authorize or flag transactions seamlessly.
For instance, managers can receive alerts for potential misuse, block unauthorized transactions based on GPS location, or streamline approval processes for on-the-road purchases, enhancing efficiency and cost control.
“Coast has been an innovative leader in fleet payments, and Visa is excited to collaborate further with them to create a new generation of offerings enabled by Coast’s powerful expense management software,” said SVP, North America Head of Visa Commercial Solutions Veronica Fernandez.
“With Coast’s platform and Visa’s advancement in the fleet, together we can provide more security, control, visibility, and reporting to all fleet operators for all of their vehicles, both gas and electric,” she added.
Market Reception and Growth
Coast’s innovative solutions have garnered an enthusiastic reception from the market. The company experienced exponential growth in 2023, serving thousands of businesses ranging from small operations to those with extensive fleets. Customer surveys reveal significant savings on fuel bills and reduced administrative workloads, demonstrating Coast’s tangible impact on operational efficiency and cost management.
Coast has forged partnerships with prominent fuel brands like 7-Eleven Fleet (including Speedway), Casey’s, RaceTrac, and EG America brands (including Cumberland Farms) to bolster its momentum. Collaborations with retailers like Discount Tire further enhance customer benefits, driving loyalty and business growth for these partners. Additionally, Coast’s alliance with Visa aims to accelerate its fleet offerings, tapping into Visa’s expertise in digital payments.
Future Endeavors
With the infusion of new funding, Coast is poised to focus on product development, expand integration partnerships, and extend support beyond fuel-related expenses. The company’s strategic expansion plans include establishing a second site in Salt Lake City, underscoring its commitment to innovation and market reach.
“Coast provides a strong financial product backed by powerful software for fleet-operating businesses, which allows it to attract very high-quality companies as customers,” Foley said. “SVB is excited to continue to provide the debt capital to help them serve these businesses for the long term,” said Brian Foley, the head of warehouse lending and relationship management for SVB.
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