Float Financial, an expense management and corporate card startup focused on the Canadian market, has raised $48.5 million in a Series B funding round.
The Toronto-based fintech has been likened to US-based fintech giants Brex and Ramp, but says it’s different in that its sole focus is on Canadian SMEs, which CEO and co-founder Rob Khazzam said are “overlooked because of Canada’s banking monopoly and the harsh economic climate’.
Goldman Sachs Growth Equity led the financing, which included participation from OMERS Ventures, FJ Labs, Teralys and existing investor Garage Capital. The raise brings Float Financial’s total venture funding to US$92.6 million since inception in 2020. The company also raised a US$36.9 million credit facility in February 2024, which it is using to extend credit to customers.
The company declined to disclose the valuation, noting only that it was an “up round” by it $30 million Series A increase led by Tiger Global in November 2021.
While Khazzam declined to disclose hard revenue figures, he claims that Float has seen its revenue grow by “50x” and total payout volume by 45x since that Series A raise. It also says it has seen an increase 30 times in assets under management, he added. The company is not yet profitable.
Float launched its first product in May 2021 and is slowly expanding its offering from corporate cards and expense management to include bill payments, high yield accounts, bill payable automation and virtual physical Canadian and US dollar cards. Jane Software, LumiQ, Knix are among its 4,000 customers.
Khazzam dismissed what he described as “discussions in the media lately that Canadian businesses are not a good place to invest right now.”
“The Canadian SME landscape is rich and varied and full of potential,” he told TechCrunch. “At Float, we understand that addressing the needs of these businesses requires a distinctly Canadian approach…Our financial system must match the speed and ambitions of Canadian businesses if we are to thrive locally and compete globally.”
Float plans to use its new capital to further expand its product offering and regional presence in Canada, as well as continue hiring.
Laura Lenz, partner at OMERS Ventures, believes that Float’s “ability to work within the Canadian regulatory framework and…understand the nuances of this market” is critical to its success.
“It takes someone well versed in these nuances to be able to create a product that works,” he said. “As investors with strong Canadian roots, we know there is an urgent need for banking infrastructure that helps Canadian businesses keep pace with their U.S. counterparts and remain competitive on the global stage.”
Want more fintech news in your inbox? Subscribe to TechCrunch Fintech here.
Want to get in touch with a tip? Email me at maryann@techcrunch.com or send me a message on Signal at 408.204.3036. You can also send a note to the entire TechCrunch crew at tips@techcrunch.com. For more secure communications, click here to contact uswhich includes SecureDrop and links to encrypted messaging apps.
