Coast, a business-to-business card payments platform with a focus on commercial fleets, vehicles, and drivers, announced last week it raised $92 million in new funding, including $25 million in equity capital led by existing investors and secured $67 million in committed debt capital from Silicon Valley Bank and TriplePoint Capital. 

In a March 21 news release, Coast, led by founder and CEO Daniel Simon, said its services allow fleet managers to set field-specific controls, like restricting purchases to only fuel products or tracking expenses on a per-vehicle basis.

Coast describes its software as giving fleet managers powerful policies and controls that they can tailor to the on-the-job needs of different employees and vehicles in their fleets. The company uses real-time information that employee drivers provide through their phones and the onboard computers of company vehicles to authorize or flag transactions. 

“We’ve been amazed by the pace of execution of Coast’s business since we first invested in the company at its founding, as well as by the scope and consistency of Daniel’s vision for financial tools for fleet operating industries,” BoxGroup Partner Adam Rothenberg said about the round. 

“In the current market, it’s more important than ever to back companies that have shown they can achieve really great unit economics by serving a well-understood need,” Rothenberg added. “We were thrilled to find an opportunity to deepen our investment in Coast.”

The company says it has grown more than fivefold in 2023 and now serves thousands of businesses, some with just a handful of fleet cards and others with more than 1,000 vehicles. Coast said surveyed customers saved “an average of 9-10% on their fuel bill and 16 hours of monthly administrative work” when switching to Coast from another fuel card or payment method.

Coast is so confident that its software controls effectively reduce abuse and waste that the company recently rolled out a first-of-its-kind security guarantee: The guarantee promises to cover fuel theft losses up to $25,000 annually for customers who enable Coast’s unique security settings.

The company has inked partnerships with fuel brands such as 7-Eleven Fleet (including Speedway), Casey’s, RaceTrac, and EG America brands, as well as retailers like Discount Tire to offer larger discounts to Coast customers while driving loyalty and repeat business for these brands.

Coast also announced that it had partnered with Visa, a world leader in digital payments, to accelerate its fleet offering. Coast cards are issued by Celtic Bank, pursuant to a license from Visa U.S.A. Inc.

“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 Veronica Fernandez, senior vice president, North America Head of Visa Commercial Solutions.  

“With Coast’s platform and Visa’s advancement in fleet, together we can provide more security, control, visibility, and reporting to all kinds of fleet operators for all of their vehicles, both gas and electric,” Fernandez added.

With the new funding, Coast said it will focus on product development, add new integration partners, support businesses' expenses beyond fuel and accelerate Coast's go-to-market capability, including the establishment of a second site in Salt Lake City.

“Coast is the financial platform for the future of transportation and the trades,” Simon, Coast’s CEO, said. “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.”

Brian Foley, the head of warehouse lending and relationship management for SVB’s national fintech practice, said SVB is excited to continue supporting Coast’s growth.

“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.”

For more information, visit coastpay.com.