Float Financial, a business finance platform for Canadian businesses, has signed a C$70 million Series B financing round, bringing its total funds raised in the last year to $120 million. The funding round was led by Growth Equity at Goldman Sachs Alternatives, with participation from OMERS Ventures, FJ Labs, Teralys, and existing investor Garage Capital.
Big Canadian brands like Jane Software, LumiQ, Knix, and more already use Float’s business finance products. And Float brings much-needed change to how Canadian businesses of all sizes spend, save, and grow their money with a combination of innovative financial services and software.
Since the November 2021 Series A, Float has seen 45 times growth in total payment volume (TPV), 50 times revenue, 30 times increase in assets under management (AUM), and 140 times expansion in credit issuance—all while achieving top quartile performance in capital efficiency. And Float’s Series B investment round demonstrates its significant potential, with a higher valuation than its Series A, despite macroeconomic uncertainty.
Last year, Float significantly expanded its expense management software and corporate cards to streamline how Canadian businesses manage their finances. With the addition of features to automate accounts payable, make reimbursements frictionless, and provide real-time insights into company spending, Float helps businesses simplify their financial operations.
Float now also offers virtual and physical cards in both CAD and USD, as well as high-yield accounts and next-day fund transfers and payments, providing faster, more flexible alternatives to traditional banking services. And the company plans to utilize the new capital to broaden its product suite further, attract top talent, and expand its leadership in the Canadian market.
In February 2024, Float secured a $50 million credit facility in partnership with Silicon Valley Bank (SVB), a division of First Citizens Bank. And existing venture capital and institutional shareholders from Series A, such as Golden Ventures, Susa Ventures, and Tiger Global, demonstrated their confidence in Float’s future by remaining fully invested.
KEY QUOTES:
“Our financial system needs to match the speed and ambition of Canadian businesses if we want to thrive locally and compete globally. Float’s mission is simple: cut through the red tape and give businesses the financial tools they need to move faster. To access more opportunities. And to do it all easily, with the click of a button. Today, 4,000 businesses use Float to manage team spend, earn high interest on cash reserves, and save days of manual reconciliation. This investment will fuel our mission to support thousands more with the financial solutions they need to lead Canada into the future.”
– Rob Khazzam, CEO of Float
“Float’s impressive growth so early on is a testament to its Canadian focus, customer-centric platform, and deeply committed team. We are thrilled to support Float in its next phase of expansion, as it makes innovative business finance solutions more accessible to Canadian businesses.”
– Clare Greenan, an investor with Growth Equity at Goldman Sachs Alternatives
