Float Financial, a business finance platform for Canadian businesses, announced it has signed a CAD $70 million Series B financing round, which brings its total funds raised in the last 12 months to $120 million.
The latest investment round is led by Growth Equity at Goldman Sachs Alternatives, with participation from the following entities: OMERS Ventures, FJ Labs, Teralys and existing investor Garage Capital.
Float’s range of business finance products is said to be trusted by Canadian brands such as Jane Software, LumiQ, Knix.
Float says that brings “change” to how Canadian businesses of all sizes spend, save and grow their money with a “combination of financial services and software.”
Since their Nov 2021 Series A funding round, Float claims that it has seen steady growth in total payment volume (TPV), more revenue, increase in assets under management (AUM) and significant expansion in credit issuance—according to the announcement.
Float’s Series B investment round demonstrates its potential, with a higher valuation compared to its Series A, despite “macroeconomic uncertainty.”
In 2024, Float expanded its expense management software and corporate cards offering to “streamline how Canadian businesses manage their finances.”
With the addition of features to automate accounts payable, make reimbursements frictionless and surface real-time insights into company spending, Float helps businesses “simplify their financial operations.”
Float reportedly offers virtual and physical cards in both CAD and USD, high-yield accounts and next-day fund transfers and payments, “providing faster, more flexible alternatives to traditional banking services.”
The company plans to leverage the new capital to further “broaden its product suite, attract top talent and expand its leadership in the Canadian market.”
Rob Khazzam, CEO of Float said:
“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.”
Clare Greenan, an investor with Growth Equity at Goldman Sachs Alternatives said:
“Float’s … 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.”
In February 2024, Float secured a $50 million credit facility in “partnership with Silicon Valley Bank (SVB), a division of First Citizens Bank.”
Existing venture capital and institutional shareholders “from Series A, including Golden Ventures, Susa Ventures, and Tiger Global, demonstrated their confidence in Float’s future by remaining fully invested.”
