Float Financial, aiming to be a BRICS in Canada, secures $48.5 million Series B round

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 US fintech giants Brix and slope But he says it’s different in that his sole focus is on Canadian SMEs, which CEO and co-founder Rob Khozam said are “being overlooked due to the banking monopoly in Canada and the difficult economic climate.”

Goldman Sachs Growth Equity led the financing, which included participation from OMERS Ventures, FJ Labs, Teralys, and existing investor Garage Capital. This increase brings Float Financial’s total venture financing to $92.6 million since its inception in 2020. The company also raised a $36.9 million credit facility in February of 2024, which it uses to extend credit to clients.

The company declined to disclose the valuation, noting only that it was “higher” than its valuation $30 million Series A The increase was led by Tiger Global in November of 2021.

While Khuzam declined to reveal actual revenue numbers, he claims that Float has seen its revenue increase by “50x” and total payout volume by 45x since its Series A raise. It also says it has seen a 30-fold increase in assets under management, he added. The company is not profitable yet.

Float launched its first product in May 2021 and has slowly expanded its offerings from corporate cards and expense management to include bill payment, high-yield accounts, accounts payable automation, and virtual physical cards in Canadian and US dollars. Jane Software, LumiQ and Knix are among its 4,000 clients.

Khozam denied what he described as “recent talk in the media that Canadian companies are not a good place to invest at the present time.”

“The Canadian SME landscape is rich, diverse and full of potential,” he told TechCrunch. “At Float, we recognize that meeting the needs of these companies requires a distinctly Canadian approach… Our financial system needs to match the speed and ambition of Canadian businesses if we are to thrive domestically and compete globally.”

Float plans to use its new capital to expand its product offerings and regional presence within Canada as well as continue hiring.

Laura Lenz, partner at OMERS Ventures, believes Float’s “ability to operate within the Canadian regulatory framework and…understand the nuances of this market” is critical to its success.

“It takes someone who is very aware of these nuances to be able to create a successful product,” she said. “As investors with strong Canadian roots, we know there is a pressing need for banking infrastructure that helps Canadian companies keep pace with their American counterparts and remain competitive on the global stage.”

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