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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 likens itself to US fintech giants Brex and landing but says it differs in its sole focus on Canadian SMEs, which CEO and co-founder Rob Khazzam says have been “overlooked due to Canada’s banking monopoly and tough economic climate.”
Goldman Sachs led the financing, which included participation from Growth Equity, OMERS Ventures, FJ Labs, Teralys and existing investor Garage Capital. The raise brings Float Financial’s venture funding to $92.6 million since 2020. The company also raised $36.9 million in credit facilities in February 2024, which it used to provide loans to customers.
The company declined to disclose the valuation, saying only that it was an “upper round.” US$30 million Series A Raised in November 2021 by Tiger Global.
Although Khazzam declined to disclose hard revenue figures, it claims to have seen its revenue grow by “50x” and total payout volume by 45x since the Float Series A raise. It also says it has seen a 30-fold increase in assets under management. 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 pay in both Canadian and US dollars, high yield accounts, accounts payable automation and virtual physical cards. Jane Software, LumiQ, Knix are among its 4,000 customers.
Khazzam dismissed what he described as “recent talk in the media that Canadian businesses are not a good place to invest right now.”
“The Canadian SME landscape is rich and diverse and full of potential,” TechCrunch said. “At Float, we understand that meeting the needs of these businesses requires a distinctly Canadian approach… If we are to thrive locally and compete globally, our financial system must match the pace and ambitions of Canadian businesses.”
Float plans to use the new capital to further expand its product offering and regional presence in Canada, as well as continue hiring.
Laura Lenz, a 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 intimately familiar with these nuances 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.”
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