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 round was led by the growth equity arm of Goldman Sachs with participation from OMERS Ventures, FJ Labs, Teralys, and return investor Garage Capital. The Globe and Mail reported the round was mostly primary capital, with an undisclosed amount of secondary capital going to employees and investors.
“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.
According to Float, the Series B comes with a higher valuation than its 2021 Series A round, but did not disclose its specifics. The Globe and Mail reported that the deal values Float above $200-million USD, including funds received, and that the company is not yet profitable.
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.
RELATED: Float’s CEO on bridging the spending and software divide
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, Float CEO Rob 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.
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