Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
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.
Toronto-based fintech compares to US-based fintech giants Brex and Ramp but he says it’s different in its single-minded focus on Canadian SMEs, which CEO and co-founder Rob Khazzam said are “neglected because of Canada’s banking monopoly and tough economic climate.”
Goldman Sachs Growth Equity led the funding, which included participation from OMERS Ventures, FJ Labs, Teralys and existing investor Garage Capital. The increase brings Float Financial’s total corporate funding to US$92.6 million as of its start in 2020. The company also raised a $36.9 million credit facility in February 2024, which used to extend credit to customers.
The company declined to reveal the valuation, noting only that it was an “up round” from its own US$30 million Series A growth led by Tiger Global in November 2021.
While Khazzam declined to reveal hard revenue figures, it claims that Float has seen its revenue increase “50x” and total payment volume by 45x since that Series A. It also says it has seen a 30-fold increase in the assets under management, he added. The company is not yet profitable.
Float launched its first product in May 2021 and has slowly expanded its offering from corporate cards and expense management to include bill payments, high-performance accounts, accounts payable automation and virtual physical dollar cards Canadians and Americans. Jane Software, LumiQ, Knix are among its 4,000 customers.
Khazzam dismissed what he described as “discussion in the media lately that Canadian companies are not a good place to invest right now.”
“The Canadian SME landscape is rich and diverse 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 needs to match the speed and ambition of Canadian businesses if we are to thrive locally and compete in the world
Float plans to use its new capital to further expand its product offering and regional presence in Canada, and to 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.
“You need someone intimately familiar with 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 American counterparts and remain competitive on the global stage.”
Want more fintech news in your inbox? Sign up for TechCrunch Fintech here.
Want to get a tip? Send me an email at [email protected] or send a message on Signal at 408.204.3036. You can also send a note to the entire TechCrunch crew at [email protected]. For more secure communication, click here to contact uswhich includes SecureDrop and links to encrypted messaging apps.
