Float Financial secures $70m Series B investment to transform Canadian business finance

Float Financial, a trailblazing business finance platform, has secured CAD $70 million in a Series B funding round led by Growth Equity at Goldman Sachs Alternatives. This latest investment brings the company’s total funding in the past year to an impressive CAD $120 million. The funding round also saw participation from prominent investors, including OMERS Ventures, FJ Labs, Garage Capital, and Teralys. Float Financial’s ability to attract such significant backing highlights its growing influence in Canadian business finance and its potential to redefine the financial landscape.

A Transformative Approach to Business Finance

Float Financial is committed to reshaping how Canadian businesses manage their finances by offering modern, user-centric solutions. The company provides a range of financial products designed to simplify complex processes like expense management, corporate spending, and accounts reconciliation.

In 2024, Float significantly expanded its offerings, introducing advanced tools such as automated accounts payable, streamlined reimbursement processes, and real-time insights into company expenditures. These features are complemented by the availability of virtual and physical corporate cards in both CAD and USD, high-yield accounts, and next-day fund transfers.

This product expansion addresses critical pain points for businesses, particularly small and medium enterprises (SMEs), by replacing traditional banking services with faster and more flexible alternatives. CEO Rob Khazzam emphasized Float’s mission to empower Canadian businesses with financial tools that align with their growth aspirations, enabling them to operate at greater speed and efficiency.

Remarkable Growth Amid Economic Challenges

Since its Series A funding in November 2021, Float Financial has demonstrated exceptional growth. The company reported a 45x increase in total payment volume (TPV), a 50x rise in revenue, and a 30x growth in assets under management (AUM). These achievements underscore Float’s ability to scale effectively while maintaining capital efficiency, an increasingly important metric in today’s challenging economic environment.

Notably, Float has also achieved a 140x expansion in credit issuance, reinforcing its position as a leader in the Canadian financial ecosystem. The company’s customer base includes over 4,000 businesses, ranging from startups to established brands like Jane Software, LumiQ, and Knix.

Strategic Investment Backing

The Series B funding led by Growth Equity at Goldman Sachs Alternatives is a strong endorsement of Float Financial’s potential. Clare Greenan, an investor at Goldman Sachs, highlighted the company’s customer-focused approach and innovative solutions, noting that these attributes have been instrumental in Float’s rapid ascent within the industry.

Existing investors, including Garage Capital and institutional shareholders from its Series A round, have also demonstrated continued confidence in Float. In February 2024, the company secured a $50 million credit facility in partnership with Silicon Valley Bank (SVB), now part of First Citizens Bank. This additional funding strengthened Float’s ability to deliver high-impact solutions tailored to the evolving needs of Canadian businesses.

Expanding Market Leadership

With CAD $70 million in new capital, Float aims to further enhance its suite of financial products while scaling its operations across Canada. The company is focused on attracting top-tier talent and deepening its market presence to serve businesses from coast to coast.

Float’s innovative financial tools are well-positioned to address the diverse needs of Canadian businesses, enabling them to optimise cash flow, improve financial transparency, and reduce operational inefficiencies. Khazzam noted that the company’s long-term vision is to ensure that businesses across Canada have access to financial solutions that empower them to thrive locally and compete globally.

Why This Investment Matters

The CAD $70 million funding round is a testament to the increasing demand for modern financial solutions tailored to Canadian businesses. It also reflects the broader trend of innovation in fintech, where platforms like Float are leveraging technology to streamline traditionally cumbersome processes.

Float’s ability to secure substantial funding in a challenging economic climate highlights its operational resilience and the confidence investors have in its strategic direction. With a clear focus on product innovation, customer-centric solutions, and market expansion, Float Financial is poised to become a cornerstone of Canadian business finance.

The Road Ahead

As Float Financial enters its next growth phase, its emphasis on delivering value to customers remains unwavering. By investing in cutting-edge technology and expanding its product offerings, Float is setting a new standard for business finance in Canada. The company’s success serves as a blueprint for how fintech firms can drive meaningful change in an industry historically dominated by traditional banking institutions.