Float Financial: Empowering Canadian SMBs with Innovative Financial Solutions
Float Financial, a Toronto-based fintech startup dedicated to revolutionizing expense management and corporate cards for Canadian small and medium-sized businesses (SMBs), has successfully secured $48.5 million in its Series B funding round. The company positions itself alongside U.S. fintech giants like Brex and Ramp, but stands out by focusing specifically on the Canadian market. CEO and co-founder Rob Khazzam believes that these SMBs are often “overlooked due to Canada’s banking monopoly and tough economic climate.”
Strategic Funding and Investment
The recent funding round was spearheaded by Goldman Sachs Growth Equity, with contributions from OMERS Ventures, FJ Labs, Teralys, and existing investor Garage Capital. This latest investment boosts Float Financial’s total venture funding to an impressive US$92.6 million since its inception in 2020. Earlier this year, the company also secured a $36.9 million credit facility to extend credit to its growing customer base.
“The landscape of Canadian SMBs is rich and diverse and chock full of potential,” Khazzam shared with TechCrunch, emphasizing the unique needs of this market segment.
– Rob Khazzam, CEO of Float Financial
Impressive Growth Metrics
Although Float Financial has not disclosed its current valuation, it notes that the Series B round was an “up round” from its previous US$30 million Series A raise led by Tiger Global in November 2021. Since that raise, the company claims a remarkable revenue increase of “50x” and a total payment volume surge of 45x. Additionally, Float has experienced a 30x growth in assets under management.
Product Expansion and Future Plans
Since launching its first product in May 2021, Float Financial has steadily broadened its offerings beyond corporate cards and expense management to include bill pay, high-yield accounts, accounts payable automation, and virtual physical cards available in both Canadian and U.S. dollars. With a customer base of over 4,000 businesses including Jane Software, LumiQ, and Knix, Float aims to use the new capital to further expand its product lineup and regional presence within Canada.
“Our financial system needs to match the speed and ambition of Canadian businesses if we want to thrive locally and compete globally,” Khazzam emphasized.
– Rob Khazzam
Navigating the Canadian Market
Laura Lenz, partner at OMERS Ventures, highlights Float’s success as being rooted in its deep understanding of the Canadian regulatory landscape. “It takes someone intimately familiar with these nuances to be able to create a product that works,” she noted. Investors with strong Canadian ties recognize the urgent need for banking infrastructure that supports local businesses in maintaining competitiveness on a global scale.
