Float Financial, a rising star in the Canadian fintech scene, recently made waves by securing a substantial $48.5 million in its Series B funding round. The company, based in Toronto, has been on a mission to revolutionize expense management and corporate card services tailored specifically for the Canadian market.
Drawing parallels to renowned U.S.-based fintech giants like Brex and Ramp, Float Financial distinguishes itself by dedicating its efforts solely to supporting small and medium-sized businesses (SMBs) in Canada. CEO and co-founder Rob Khazzam emphasizes that these Canadian SMBs often face challenges due to the country’s banking monopoly and stringent economic conditions.
Goldman Sachs Growth Equity spearheaded this latest financing round, with notable contributions from esteemed investors such as OMERS Ventures, FJ Labs, Teralys, and existing investor Garage Capital. This injection of funds now brings Float Financial’s total venture capital raised since its inception in 2020 to an impressive US$92.6 million.
In addition to this recent success, Float Financial secured a significant $36.9 million credit facility back in February 2024. This financial boost enabled the company to expand its credit offerings to customers, further solidifying its position within the competitive fintech landscape.
Khazzam remained tight-lipped about exact revenue figures but shared promising growth statistics following their Series A funding led by Tiger Global in November 2021. He revealed that Float had experienced a remarkable 50x increase in revenue and a substantial 45x surge in total payment volume post-Series A raise. Moreover, assets under management soared by an impressive factor of 30x during the same period.
Despite these impressive growth metrics, Float Financial is yet to achieve profitability. Nonetheless, Khazzam remains optimistic about the future trajectory of the company as they continue expanding their suite of services beyond corporate cards and expense management.
Since launching its flagship product in May 2021, Float has gradually diversified its offerings to encompass bill pay services, high-yield accounts, accounts payable automation solutions, as well as virtual physical cards available in both Canadian and U.S. dollars – catering to a wide range of customer needs.
Amongst their growing list of satisfied clients are prominent names like Jane Software, LumiQ, and Knix – highlighting Float’s appeal across various industries within Canada’s business landscape.
Khazzam firmly rebutted any negative perceptions around investing in Canadian businesses circulating within media circles lately. He emphasized the vibrancy and potential present within Canadian SMBs while stressing that meeting their unique requirements demands a specialized approach tailored for the local market dynamics.
Looking ahead with optimism fueled by their recent funding success,Floa plans utilize this fresh capital infusion towards enhancing their product portfolio further along with bolstering their regional footprint across Canada through strategic hiring initiatives.
Laura Lenz from OMERS Ventures underscored Float’s understanding of navigating Canada’s regulatory framework as vital for sustained success.
“It takes someone intimately familiar with these nuances,”
she explained,
“to create a product that resonates effectively within this market.”
The urgency for innovative banking infrastructure capable of empowering Canadian businesses to compete globally is evident according to Lenz.
“Canadian enterprises need tools that match international standards while staying true to local nuances,”
she stated emphatically underscoring Float’s pivotal role.
As we see more players like Float Financial making significant strides within the fintech arena,it reflects not just shifting industry trends but also an evolving mindset amongst investors recognizing Canada’s untapped potential.Join us on this journey as we witness how companies like Floatare reshaping financial landscapes one investment at a time.
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With each milestone achieved,the narrative unfolds revealing new opportunities,new challenges,and above all,a commitment towards fostering financial inclusivity on both localand global scales.So let us stay tuned,because who knows what transformative changes tomorrow might bring?
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