This week, Toronto-based Float launched a new version of its corporate card after seeing a period of significant growth in the past year.
The second version of the card comes two years after Float first launched, and follows a 4x increase in its revenue. Float claims it has helped thousands of customers, processing over 140,000 transactions per month.
Float provides banking solutions for Canadian companies. In addition to its corporate cards, the startup also offers a spending management platform for businesses that can match receipts to transactions. The platform can also be integrated with Quickbooks, Xero, and NetSuite.
When Float launched USD support in 2022, it increased its customers by 5x and its transaction volume by 8x.
Float attributes this growth to providing value to its customers in a space where small businesses have often felt underserved by banks. As unfavourable market conditions put the squeeze on companies’ finances, Float said this new product is meant to provide Canadian businesses with more flexibility and manage their team spending.
Some of the new features of “Float Cards 2.0” include merchant and category restrictions, temporary spending limits, and one-time use cards. For example, companies can assign a virtual Float card to their marketing manager for their ad spending. Using Float’s new card, businesses can assign a recurring limit for their monthly budget, and create or approve a temporary limit for things like short-term marketing campaigns.
Additionally, Float said its new product is the only card offering in Canada that enables corporate finance teams to issue cards with $0 balances and only load funds when needed. The next-generation cards are also available in both CAD and USD.
Float launched its USD smart corporate cards in October 2022, extending the capabilities of its banking solutions to support transactions in American currency. According to Float, that expansion increased its customers by 5x and its transaction volume by 8x. Float also said its USD card has become a core part of its business, as it accounts for nearly 20 percent of total spending across its products.
In 2022, Float launched its credit offering named “Charge Card,” allowing businesses to apply for up to $500,000 in unsecured 30-day credit terms to help their clients extend their cash runway. Like its USD cards, Float said its credit product saw “exceptional takeup,” with 7x customer growth and 10x growth in payment volume since its introduction.
Despite all signs pointing towards growth, however, Float has not been immune to the effects of the economic downturn. Float CEO Rob Khazzam noted in October that the startup has been cautious about its own spending.
Float has raised sizeable funding rounds in the past, when venture funding flowed to startups in larger volumes. In 2021 alone, Float raised $37 million CAD in its Series A round led by Tiger Global, as well as $5 million in seed funding. Float also quietly raised additional capital from some of its existing investors in the following months.
As venture capital dried up in the last year however, a number of startups in FinTech and other technology sectors faced liquidity issues. In April, banking apps Pillar and Billi shut down their businesses as both startups cited they were unable to secure the funding needed to continue operations. Nuula, which aimed to build a “super app” of financial services for small and medium-sized businesses, saw its Series A round collapse in October 2022. This led to Nuula’s sale to United States-based Nav Technologies earlier this year.
Featured image courtesy Float.