Canadian Fintech Float Financial Raises $50M to Challenge Banking Status Quo
Toronto-based financial technology startup Float Financial has secured a \(50 million (CAD\)72 million) Series B funding round as it positions itself as Canada’s answer to U.S. fintech leaders Brex and Ramp. The company specializes in expense management and corporate card solutions tailored specifically for Canadian small and medium businesses (SMBs).
Funding Highlights and Growth Trajectory
- Lead Investor: Goldman Sachs Growth Equity
- Participating Investors: OMERS Ventures, FJ Labs, Teralys, and Garage Capital
- Total Funding to Date: $92.6 million since 2020 launch
- Recent Credit Facility: $36.9 million secured in February 2024
While Float declined to disclose its current valuation, CEO Rob Khazzam confirmed this represents an “up round” from its $30 million Series A in 2021 led by Tiger Global.
Addressing Canada’s Unique Financial Challenges
Float Financial distinguishes itself by focusing exclusively on Canadian SMBs, which Khazzam describes as “overlooked due to Canada’s banking monopoly and tough economic climate.” The company has seen remarkable growth since its Series A:
- 50x revenue increase
- 45x growth in total payment volume
- 30x increase in assets under management
“The landscape of Canadian SMBs is rich and diverse and chock full of potential,” Khazzam told TechCrunch. “Our financial system needs to match the speed and ambition of Canadian businesses if we want to thrive locally and compete globally.”
Expanding Product Offerings
Since launching its first product in May 2021, Float has evolved from basic corporate cards to a comprehensive financial platform offering:
- Bill pay services
- High-yield accounts
- Accounts payable automation
- Virtual and physical cards in both CAD and USD
The platform currently serves 4,000 customers including notable brands like Jane Software, LumiQ, and Knix.
Investor Confidence in Canadian Fintech
Laura Lenz, Partner at OMERS Ventures, emphasized Float’s unique positioning: “It takes someone intimately familiar with these nuances to be able to create a product that works. As investors with strong Canadian roots, we know there’s an urgent need for banking infrastructure that helps Canadian businesses keep pace with their U.S. counterparts.”
Future Plans
The fresh capital will fuel:
- Product development and expansion
- Increased regional presence across Canada
- Strategic hiring initiatives
Despite not yet being profitable, Float’s rapid growth and specialized focus on Canadian SMB banking needs position it as a strong contender in North America’s competitive fintech landscape.
Editor’s Note: Funding amount updated post-publication from \(48.5M to \)50M (CAD$72M).
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