Float Financial announced it raised a CAD $85 million all-equity Series C round to continue building what it describes as Canada’s intelligent financial operating system.
The round was led by Inovia Capital, with continued participation from Goldman Sachs Alternatives and Garage Capital. New investors BDC Capital and Northleaf also participated. The financing raised Float’s valuation by 70%.
Float has now raised CAD $300 million since inception across debt and equity financing. Existing investors remained fully invested in the company.
Float provides a suite of finance products for Canadian businesses, including corporate cards in Canadian and U.S. dollars, automated expense management, next-day bill payments, high-yield business accounts, working capital credit, cross-border payments, and support built for Canada’s regulatory and bilingual requirements.
The company plans to use the Series C funding to advance Float Intelligence, its proprietary AI layer that automates everyday finance workflows. Float also plans to expand across Western Canada and Quebec and increase hiring across product, research and development, sales, and marketing.
Since closing its Series B, Float has grown its active customer base by 100% to more than 7,500 Canadian businesses. The company also grew revenue by more than 120% and said business account balances increased more than 4.5 times as customers increasingly keep cash with Float.
Volumes across five of Float’s products are up more than 100%, and nearly one-third of customers now use more than one Float product. The company was also named the fastest-growing fintech in Canada on The Globe and Mail’s Top Growing Companies list.
Float’s customers include Canadian companies such as Cohere, Knix, Neo, Jane, and Rebel. The company said its platform gives Canadian businesses a single place to manage spending, payments, and cash as an alternative to disconnected finance tools.
Float has also applied AI internally to stay lean while scaling. The company said its 170-person team has increased revenue per employee by 50%, even as many companies across the technology sector have reduced headcount. Float Intelligence is designed to bring similar workflow automation capabilities to customers by embedding AI into the financial operations they manage every day.
As part of the financing, Dennis Kavelman, Partner at Inovia Capital, will join Float’s board of directors.
KEY QUOTES:
“We are not waiting for our financial system to catch up to the needs of Canadian businesses. We are setting the pace ourselves. We have spent the past five years building what this market required – the infrastructure, the licenses, the products – and Float Intelligence is the AI layer that puts it all to work.”
“Canadian businesses are asking harder questions about who they trust with their finances, and they want answers built here, for them. This is the moment we built Float for. With this raise, we can put it in front of thousands more businesses that deserve better.”
“We are not building a single feature. We are building the infrastructure that powers how Canada does business – and proving that the best financial tools for Canadian businesses don’t have to come from somewhere else.”
Rob Khazzam, CEO and Co-Founder of Float
“Float is growing at breakout speed, and that momentum reflects both the strength of its product and the depth of the team behind it. Customers are expanding their use of Float’s platform, new products are reinforcing one another, and Float’s Canadian-first infrastructure creates a differentiated advantage that will be difficult to replicate. We are proud to partner with Rob and the team as they build a financial operating system designed for Canadian businesses.”
Dennis Kavelman, Partner at Inovia Capital
“We led Float’s Series B because we saw a team building the financial infrastructure Canadian businesses had long needed. Float has delivered since, growing quickly while customers adopt more of the platform. Reinvesting now reflects our continued conviction in the team and in what they are building for Canada.”
Clare Greenan, Vice President, Growth Equity at Goldman Sachs Alternatives
“Float has revolutionised the accounting function at Jane. Over the years, we have watched US companies implement the latest and greatest AP and expense management solutions, and we are thrilled that Float has built these features for the Canadian market to put us on a level playing field.”
Josh Andler, Director of Finance at Jane
