Float Financial, a startup specialising in expense management and corporate cards within the Canadian market, has successfully secured $48.5 million in a Series B funding round.
Based in Toronto, this fintech company draws comparisons to prominent U.S.-based rivals like Brex and Ramp. However, CEO and co-founder Rob Khazzam emphasises that Float Financial’s unique proposition centres around addressing the needs of Canadian small and medium-sized businesses (SMBs), which he believes have been “overlooked due to the prevailing banking monopoly and challenging economic environment in Canada.”
The financing was spearheaded by Goldman Sachs Growth Equity, with additional backing from OMERS Ventures, FJ Labs, Teralys, and existing investor Garage Capital. This funding round elevates Float Financial’s total venture capital to US$92.6 million since its launch in 2020. In addition, the company secured a $36.9 million credit facility in February 2024 to enhance its lending capacity to clients.
While the company opted not to disclose its valuation, it did mention that this investment round signifies an “up round” compared to its previous US$30 million Series A funding, which was led by Tiger Global in November 2021.
Although Khazzam did not share specific revenue figures, he asserted that Float has experienced a “50x” increase in revenue and a 45x rise in total payment volume since the Series A round. Furthermore, he reported a 30x growth in assets under management. The company has not yet reached profitability.
Float introduced its first product in May 2021 and has progressively broadened its offerings. These include corporate cards, expense management solutions, bill payment services, high-yield accounts, accounts payable automation, and both virtual and physical cards in Canadian and U.S. dollars. Among its 4,000 customers are notable names like Jane Software, LumiQ, and Knix.
Khazzam refuted recent media claims suggesting that Canadian enterprises are currently unattractive for investment.
“The landscape of Canadian SMBs is vibrant and diverse, brimming with potential,” he stated in an interview with StartupSuperb. “At Float, we recognise that meeting the demands of these businesses requires a uniquely Canadian approach. Our financial system must match the pace and ambition of Canadian businesses to flourish locally and compete on a global scale.”
Float intends to utilise its newly acquired funds to enhance its product suite and increase its footprint across Canada, alongside continuing to expand its team.
Laura Lenz, a partner at OMERS Ventures, expressed that Float’s “ability to navigate the Canadian regulatory landscape and understand the specific characteristics of this market” is vital to its success.
“It requires an intimate understanding of these nuances to create effective products,” she stated. “As investors deeply rooted in Canada, we recognise that there is an urgent demand for banking solutions that enable Canadian businesses to keep up with their U.S. counterparts and maintain a competitive edge in the global arena.”
Want to receive more fintech updates directly to your inbox? Subscribe to StartupSuperb Fintech here.
If you have a tip to share, please reach out via email at maryann@startupsuperb.com or send a message on Signal at 408.204.3036. You can also contact the entire StartupSuperb team at tips@startupsuperb.com. For more secure communication options, click here to connect with us, which includes SecureDrop and links to encrypted messaging applications.
