Toronto-based corporate card and expense management technology startup Float has secured a $70-million CAD Series B round to increase its footprint in Canada.
The all-equity round was led by the growth equity arm of Goldman Sachs with participation from OMERS Ventures, FJ Labs, Teralys, and return investor Garage Capital. Clare Greenan, a vice-president with Goldman Sachs growth equity, will be joining Float’s board as a result of the round.
Float CEO and co-founder Rob Khazzam told BetaKit in an email statement that there was a “minor” secondary capital component, but declined to disclose the exact split. Including this latest round, Float has raised $124-million CAD in external equity funding to date.
“We have to stop resting on the laurels of legacy institutions that no longer serve everyone.”
Rob Khazzam
Float
Float said in a statement that the new capital will be used to broaden its product suite, attract top talent, and expand its leadership in the Canadian market. Khazzam told BetaKit that Float will “continue to deepen” its spending management solutions and expand its financial services beyond its flagship high-yield account product, ultimately intending to move into the realm of financial-services partner for small and mid-market Canadian businesses.
Float currently sits at about 100 employees, and while Khazzam declined to disclose how many new employees he intends to hire with this capital, he said Float will be hiring in all parts of the business, including product, engineering, sales, marketing, and operations.
“We purposefully chose to scale Float without adding significant headcount,” Khazzam said. “By focusing on efficiency from the outset, we built a stronger business that’s positioned for growth before we raised more capital.”
According to Float, the Series B comes with a higher valuation than its 2021 Series A round. While Khazzam did not disclose Float’s exact valuation, he did confirm to BetaKit that it exceeds $200-million USD, including funds received, and that the company was not yet profitable. When asked if Float had a timeline to achieve profitability, he said “We still have a meaty product roadmap to deliver to Canadian businesses first.”
Float claims that, since its Series A round, it has seen growth in total payment volume by a factor of 45, revenue by a factor of 50, and assets under management by a factor of 30. The company also said that participants from its Series A round, including Golden Ventures, Susa Ventures, and Tiger Global, remain fully invested in Float.
Founded in 2019, Float aims to simplify spending for Canadian companies. The startup’s flagship business finance platform combines corporate cards with spend management software, giving finance teams real-time visibility into business spending as well as the capacity to spend, track, approve, and reconcile expenses.
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Last February, Float secured a $50-million CAD credit facility from Silicon Valley Bank to grow its corporate credit offering. The company also launched new products throughout 2024, with new bill pay and reimbursements offerings, powered through a partnership with Australian-founded, Singapore-headquartered FinTech firm Airwallex. Float claims that more than 4,000 Canadian businesses now use its services, including Jane Software, LumiQ, and Knix.
In a blog post, Khazzam used the round to speak on Canada’s current political and economic climate, saying that “The investment in Float is an investment in Canada.” He added that Canada is “at a tipping point,” and that the nation’s economic and social prosperity is at stake.
“As a nation, we must aim higher by fostering innovation and removing barriers that make it harder to build businesses in Canada,” Khazzam said. “We have to stop resting on the laurels of legacy institutions that no longer serve everyone.”
Feature image courtesy of Float.