Canadian business finance platform Float Financial has raised CAD$70m in a Series B financing round led by the investment arm of Goldman Sachs.
This recent investment takes the total raised for Float Financial to $120m in the last 12 months, with the Series B funding round featuring participation from OMERS Ventures, FJ Labs, Teralys and existing investor Garage Capital.
Float’s mission is to help businesses simplify financial operations. The company offers virtual and physical cards in both CAD and USD, as well as expense management software. This software was recently enhanced to automate accounts payable, make reimbursements frictionless and showcase real-time insights into company spending.
Rob Khazzam, CEO of Float, commented: “Our financial system needs to match the speed and ambition of Canadian businesses if we want to thrive locally and compete globally. Float’s mission is simple: cut through the red tape and give businesses the financial tools they need to move faster. To access more opportunities. And to do it all easily, with the click of a button.
“Today, 4,000 businesses use Float to manage team spend, earn high-interest on cash reserves and save days of manual reconciliation. This investment will fuel our mission to support thousands more with the financial solutions they need to lead Canada into the future.”
As noted above, Growth Equity at Goldman Sachs Alternatives led the funding round. The firm will be hoping that Float sees the same success it did after its Series A round, as it saw 5x growth in total payment volume (TPV), 50x revenue, 30x increase in assets under management and 140x expansion in credit issuance.
Clare Greenan, an investor with Growth Equity at Goldman Sachs Alternatives, said: “Float’s impressive growth so early on is a testament to its Canadian focus, customer-centric platform and deeply committed team.
“We are thrilled to support Float in its next phase of expansion, as it makes innovative business finance solutions more accessible to Canadian businesses.”
This deal comes just days after analysts predicted global investments in fintech would remain a lot less frequent as has been the case since 2021.
Innovate Finance published a report that showed a continuous decline. Regarding the UK, in 2021, £10.57bn was invested in the sector, followed by £9.75bn in 2022. Investment dropped significantly to £4.7bn in 2023, and in 2024 further decreased to £3bn. This trend was also witnessed globally.
When looking at capital raised in 2024, Canada found itself in seventh position behind China, Brazil, Singapore, India, the UK and the US. The country has been highlighted as a ‘bright spot’ in the report, however, due to expereicing a 27% increase from 2023 in investment volume.
