Float’s $70M Series B: Advancing Canadian SMB Finance

Float Financial, a Toronto-based startup focused on corporate card and expense management, has raised $70 million in its Series B funding round. Led by Growth Equity at Goldman Sachs Alternatives, the round saw participation from investors such as OMERS Ventures, FJ Labs, Teralys and existing backer Garage Capital. This brings Float’s total funding to over $120 million in the past year alone, solidifying its position as a key player in the Canadian small and medium-sized business (“SMB”) market.

Founded in 2019 by University of Waterloo graduates, Float’s mission is clear: to address the unique challenges that Canadian SMBs face in managing business finances. Rob Khazzam, CEO and co-founder, pointed out that these businesses are often overlooked due to Canada’s banking monopoly and the tough economic climate. By providing a solution tailored to the needs of SMBs, Float has tapped into a market that has long been underserved.

Since its Series A round in 2021, Float has experienced impressive growth. The company’s total payment volume has grown by a multiple of 45, revenue has surged 50-fold, and assets under management have increased by a factor of 50. Despite not yet achieving profitability, Float’s trajectory suggests that it is building a foundation for long-term success. The funding from the Series B round will be used to expand its product suite and attract talent. The company plans to move beyond its current offerings, which includes Float Yield, a product that promises rates up to 2.7x higher than those offered by traditional Canadian banks. With its eyes set on becoming a key player in the Canadian SMB finance space, Float is positioning itself to become a comprehensive financial-services partner for SMBs and to challenge the incumbents that have long dominated the market.