Float Financial, an expense management and corporate cards startup focused on the Canadian market, has raised $48.5 million in a Series B funding round.
The Toronto-based fintech company likens itself to U.S.-based fintech giants Brex and Lamp, but says it's different in that it focuses exclusively on Canadian small and medium-sized businesses. “Canada's banking monopoly and strict policies have caused it to be overlooked,” said co-founder Rob Kazam. economic situation. ”
Goldman Sachs Growth Equity led the funding, with participation from OMERS Ventures, FJ Labs, Teralys, and existing investor Garage Capital. This raise brings Float Financial's total venture funding to US$92.6 million since its founding in 2020. The company also raised a $36.9 million line of credit in February 2024, which it is using to extend credit to its customers.
The company declined to disclose the valuation, saying only that it was an “upgrade” from the US$30 million Series A funding led by Tiger Global in November 2021.
Kazam declined to provide specific revenue numbers, but claims that since the Series A raise, Float's revenue has increased “50 times” and total settlements have increased 45 times. . He also said that assets under management have increased 30 times. The company is not yet profitable.
Float launched its first product in May 2021 and has gradually expanded its services from corporate cards and expense management to bill payments, high-yield accounts, accounts payable automation, virtual physical cards for Canadian dollars and US dollars, and more. I did. Its 4,000 customers include Jane Software, LumiQ, and Knix.
Kazam dismissed what he said was “recently saying in the media that Canadian companies are not a good place to invest at this time.”
“Canada's small business landscape is rich, diverse and full of potential,” he told TechCrunch. “At Float, we understand that addressing the needs of these businesses requires a uniquely Canadian approach…If we want to succeed locally and compete globally, our financial system is uniquely Canadian. We need to match the speed and ambition of our business.”
Float plans to use the new funding to further expand its product offerings and regional presence in Canada, as well as continue to hire.
Laura Lenz, a partner at OMERS Ventures, believes Float's “ability to operate within the Canadian regulatory framework and understand the nuances of this market…” will be critical to its success.
“You need someone who knows these nuances to create a product that works,” she said. “As investors with strong Canadian roots, we recognize the urgent need for banking infrastructure that allows Canadian businesses to keep pace with their U.S. counterparts and remain competitive on the world stage. Masu.”
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