“Jumbo-Shrimp” Fintech: How Flex Is Serving Mid-Sized Businesses With Its $60M War Chest
Mid-sized businesses often slip through the cracks: too big for the small-business fintech tools, but too small to justify the heavy finance teams of large corporations. Enter Flex — the latest AI-powered startup aiming to become the financial backbone for these “jumbo-shrimp” companies. On December 4, 2025, Flex announced it raised US$60 million in a Series B funding round led by Portage Ventures, bringing its total funding to roughly US$105 million and valuing the company at around US$500 million. ([Reuters][1])
Why Mid-Sized Firms Need Flex
Flex targets businesses with annual revenues between roughly US$2 million and US$100 million — businesses that generate stable profits but often lack a dedicated finance department. According to CEO Zaid Rahman, many of these firms have only a few employees running all financial operations. ([Reuters][1])
These mid-sized firms collectively account for about 40% of U.S. payroll, underscoring their outsized role in employment despite being underserved by traditional financial platforms. ([Reuters][1])
What Flex Offers: One Platform, Many Tools
Rather than focusing on a single function — like expense tracking or loans — Flex offers a suite of integrated financial tools:
- Private credit
- Business finance solutions
- Personal finance tools
- Payments and billing services
This bundling allows mid-sized business owners to manage multiple financial needs in one place, rather than juggling disparate systems or relying on regional banks. ([Reuters][1])
Flex also offers payment and credit card services: the company recently announced an invite-only consumer credit card, Flex Elite, which aims to compete with high-end cards like Amex Centurion. ([Reuters][1])
Traction and Reliability: Growth with Guardrails
In the past year, Flex’s payment volume tripled — reaching US$3 billion — a clear sign that its tools are gaining traction among its target users. ([Reuters][1])
Nonetheless, the company is aware of the skepticism around AI-powered fintech solutions: a recent study by MIT suggested only about 5% of AI projects scale beyond pilot phases. ([Reuters][1])
To counter the risk of errors, Flex doesn’t rely solely on AI: all AI-generated financial outputs are reviewed by financial experts before being delivered to clients. That hybrid human-AI model is a core part of its trust strategy. ([Reuters][1])
What the New Funding Means — and Why It Matters
With the new funds, Flex plans to expand its team (currently around 80 people) and double down on product development and go-to-market efforts. ([Reuters][1])
If successful, Flex could reshape how mid-sized businesses handle their finances, offering a scalable alternative to traditional banks — and perhaps inspiring similar fintech ventures focused on this often-overlooked segment.
Glossary
- Series B funding: A second round of investment for startups that have achieved initial growth; typically used to scale operations.
- Private credit: Loans or credit extended by non-bank institutions or funds, often with more flexible terms, typically used by businesses unable or unwilling to borrow from traditional banks.
- Fintech: Short for “financial technology”; refers to companies using modern technology (often software or AI) to provide financial services previously handled by traditional banks or institutions.
Flex’s bold bet on “jumbo-shrimp” businesses signals a potential shift in how mid-sized firms manage financial operations — combining AI efficiency with human oversight, all under one roof.
Source: Reuters article, December 4, 2025. ([Reuters][1])
| [1]: https://www.reuters.com/business/finance/ai-startup-flex-raises-60-million-offer-finance-tools-mid-sized-businesses-2025-12-04/ “AI startup Flex raises $60 million to offer finance tools for mid-sized businesses | Reuters” |
