Float Financial Raises $70M Series B to Revolutionize Canadian Business Finance
In a major boost to its ambitious growth plans, Toronto-based Float Financial has raised CAD $70 million in a Series B funding round, marking a significant milestone for the innovative business finance platform. The funding round was spearheaded by Growth Equity at Goldman Sachs Alternatives, with contributions from OMERS Ventures, FJ Labs, Teralys, and long-time supporter Garage Capital. This fresh infusion brings Float’s total capital raised over the past year to CAD $120 million, cementing its position as a rising force in Canada’s fintech sector.
Float’s trajectory has been nothing short of extraordinary. Since its Series A funding in late 2021, the company has achieved remarkable growth metrics, including a 45-fold surge in total payment volume, a 50-fold revenue increase, a 30-fold jump in assets under management, and a staggering 140-fold expansion in credit issuance. These figures are a testament to the company’s ability to address a pressing gap in Canada’s business finance landscape with agility and efficiency.
CEO Rob Khazzam articulated the company’s vision for reshaping financial services for Canadian businesses. “Our financial system needs to match the speed and ambition of Canadian businesses if we want to thrive locally and compete globally,” he said. Khazzam emphasized Float’s mission to remove bureaucratic barriers, offering businesses user-friendly tools to accelerate growth. With over 4,000 companies already leveraging Float’s solutions for spending management and cash flow optimization, the company’s reach is set to expand further with this latest investment.
Float Financial’s $70M Series B
The timing of this funding is significant. Despite macroeconomic uncertainty, Float’s Series B round saw a higher valuation than its Series A, signaling strong investor confidence in the company’s long-term potential. Clare Greenan, an investor with Growth Equity at Goldman Sachs Alternatives, praised Float’s rapid ascent. “Float’s impressive growth so early on is a testament to its Canadian focus, customer-centric platform, and deeply committed team,” she said. Greenan expressed confidence in the company’s ability to democratize access to cutting-edge financial solutions for Canadian businesses.
In 2024, Float made substantial advancements to its product suite, transforming how Canadian companies manage their finances. With new features that automate accounts payable, facilitate seamless reimbursements, and provide real-time spending insights, Float’s platform has evolved into an indispensable tool for businesses seeking to streamline operations. The company also introduced corporate cards in both CAD and USD, along with high-yield accounts and next-day fund transfers, offering an agile alternative to traditional banking services.
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Earlier in the year, Float secured a $50 million credit facility in collaboration with Silicon Valley Bank, further solidifying its financial foundation. Existing backers from the Series A round, including Golden Ventures, Susa Ventures, and Tiger Global, doubled down on their investments, underlining the broad-based confidence in Float’s strategic direction.
The infusion of new capital will allow Float to deepen its product offerings, attract top-tier talent, and consolidate its leadership in Canada’s rapidly evolving fintech ecosystem. With its laser focus on serving Canadian businesses, Float is well-positioned to navigate a competitive landscape while driving innovation in financial services.
