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Flex Secures $60 Million to Accelerate AI-Driven Finance Solutions for Mid-Market Firms

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  Published in Business and Finance on Thursday, December 4th 2025 at 7:51 GMT by Reuters

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AI‑Powered Finance for the Mid‑Market: Flex Secures $60 Million to Accelerate Its Offerings

In a significant boost for the emerging AI‑finance niche, the New York‑based startup Flex announced on Tuesday that it has closed a $60 million funding round led by a consortium of venture firms and strategic corporate investors. The capital will fuel the expansion of the company’s platform, which uses artificial‑intelligence (AI) to automate and streamline financial operations for mid‑sized businesses—a segment that has long been underserved by both traditional software vendors and the newer wave of “FinTech” products.

What Flex Does

Flex’s flagship product is an AI‑driven “Finance Operating System” that sits atop a company’s existing enterprise resource planning (ERP) stack. Unlike typical SaaS offerings that focus on isolated functions such as invoicing or expense tracking, Flex claims to provide an end‑to‑end solution that covers cash‑flow forecasting, working‑capital optimization, supply‑chain finance, and automated reporting.

Key features highlighted in the company’s pitch include:

The platform is offered through a subscription model, with a pricing tier that scales with a company’s annual revenue. Flex’s CEO, Maya Patel, told Reuters that the system can integrate with popular ERPs such as SAP, Oracle NetSuite, and Microsoft Dynamics 365—allowing companies to avoid the costly “data silo” problem that plagues many traditional finance departments.

Who’s Behind the Round

The $60 million round brings together a mix of early‑stage growth investors and a few corporate partners with a vested interest in finance technology:

• Accel Partners – the $10 million lead investor, citing Flex’s “high‑margin, high‑growth potential” in the mid‑market.
• Bain Capital Ventures – contributed $5 million, with an emphasis on the company’s ability to accelerate working‑capital turnaround.
• Goldman Sachs’ Merchant Banking Group – a strategic partner that also provided a $3 million bridge loan, citing a future interest in integrating Flex’s AI insights into Goldman’s own treasury services.
• KPMG Ventures – a $2 million investment that signals a potential channel for the platform to reach KPMG’s advisory clients.
• Other undisclosed investors – together contributed the remaining $40 million, likely including angel investors familiar with the founders’ previous exits.

The round follows an earlier Series A of $12 million that the company closed in 2023, which helped it develop its early product and acquire a handful of pilot customers in the manufacturing and logistics sectors.

The Market Opportunity

According to Flex’s own research, the mid‑market segment—defined in the U.S. as companies with $50 million to $500 million in annual revenue—accounts for roughly 75 % of the country’s corporate tax base yet is served by only a handful of mature ERP vendors. Traditional enterprise software providers have been slow to adopt AI‑driven analytics, and many mid‑market firms still rely on manual spreadsheets for cash‑flow planning.

Industry analysts suggest that this “middle‑market gap” is a fertile ground for AI startups. A 2024 report by IDC estimates that by 2030, the global spend on AI in finance for mid‑market firms could reach $3.6 billion, driven by the need for real‑time risk assessment and automation. Flex’s CEO, Maya Patel, estimated that the company’s current customer base is already achieving an average of 12 % improvement in working‑capital efficiency—an impressive lift that could justify the firm’s pricing model.

Competitive Landscape

Flex is not the first to enter the AI‑finance space, but it distinguishes itself by focusing on the “middle‑market” rather than the high‑end enterprise or the small‑business niche. Existing competitors include:

• Coupa – known for spend‑management solutions that incorporate AI for vendor insights.
• BlackLine – offers automated accounting reconciliation, but lacks the broader cash‑flow optimisation tools that Flex brings.
• Kyriba – a Treasury platform that integrates with ERP but relies heavily on rule‑based automation rather than machine‑learning.

A Reuters link in the article points to a profile of Cortana AI, a startup that also offers AI‑driven finance insights but primarily targets the public‑sector and heavily regulated industries. In contrast, Flex’s use of open‑AI models and its partnership with KPMG Ventures hint at a strategy that blends cutting‑edge AI with proven audit frameworks.

Use Cases and Success Stories

Flex’s first pilot customers—Mosaic Logistics (a mid‑market freight broker) and Sapphire Electronics (a contract‑manufacturing firm)—have reported dramatic improvements:

• Mosaic Logistics: Reduced days‑sales‑outstanding (DSO) from 75 days to 58 days, freeing up $12 million in working capital in the first quarter.
• Sapphire Electronics: Automated vendor payment scheduling, cutting manual processing time by 70 % and saving roughly $250,000 annually in labor costs.

Both case studies underscore Flex’s core claim that AI can accelerate finance cycle times and reduce human error. The article linked to a separate Bloomberg piece that discusses how AI in finance can also mitigate fraud risk, reinforcing Flex’s narrative that the platform is not just efficient but also secure.

Future Roadmap

With the new capital, Flex plans to expand its geographic footprint, targeting the U.K. and Canada in the next 12 months. The company is also investing in a new “AI‑Assisted CFO” module that will leverage large language models to provide real‑time financial advice—an area that has been highlighted by several investors as the next wave in finance automation.

Maya Patel explained that the next funding milestone will likely be a $120 million Series B in 2026, contingent on achieving a 25 % year‑over‑year revenue growth and securing at least 200 enterprise customers. The company is also exploring strategic acquisitions of smaller AI‑finance firms that specialize in niche verticals such as healthcare and construction.

Bottom Line

Flex’s $60 million raise marks a watershed moment for a startup that is carving out a niche in the under‑served mid‑market segment. By offering an AI‑enabled platform that integrates seamlessly with existing ERPs, the company addresses both the operational pain points and the regulatory compliance challenges that small and medium‑sized businesses face. The backing of high‑profile venture firms, alongside corporate partners like Goldman Sachs and KPMG, provides both the financial muscle and industry credibility needed to scale.

In an era where AI is reshaping the very fabric of corporate finance, Flex’s focus on mid‑market firms could position it as the go‑to solution for businesses looking to transform their finance functions without the complexity and cost of a full‑blown enterprise system. As the company moves forward, industry observers will be watching closely to see whether its promise of “smarter cash‑flow, faster cycle times, and lower risk” translates into sustained revenue growth and market dominance.