Float Financial, a Toronto-based fintech startup aiming to redefine business spending in Canada, has raised $48.5 million in a Series B funding round, pushing its valuation past $400 million. This milestone solidifies Float’s ambition to become Canada’s answer to Brex by providing modern financial tools for businesses seeking flexibility and control.
The round, as reported by TechCrunch, was led by prominent investors including Tiger Global Management, with participation from existing backers such as Golden Ventures and Susa Ventures. Float plans to use the funds to scale its corporate card and spend management platform, targeting underserved Canadian businesses that have historically faced limited options for financial tools (TechCrunch).
CEO Rob Khazzam described the raise as a turning point for the company, saying, “Canadian businesses deserve financial products built for the way they operate today—nimble, cross-border, and tech-forward. This funding allows us to expand rapidly while delivering value to our customers.”
Float’s growth trajectory has been closely watched since its launch in 2020. According to Forbes, the company’s platform offers higher credit limits without personal guarantees and provides businesses with tools for automating expense management, streamlining workflows, and integrating with accounting systems like QuickBooks and Xero (Forbes).
Scaling for Growth
With the Series B funds, Float plans to expand its product offerings and accelerate its go-to-market strategy. Bloomberg notes that the company has achieved a 300% year-over-year increase in payment volumes, driven by demand for solutions that cater to multi-currency transactions in CAD and USD (Bloomberg).
The company is also investing in advanced features, including real-time expense analytics and integrations with enterprise resource planning (ERP) systems, to meet the evolving needs of its customers.
The Brex of the North
Float’s growth mirrors the rise of Brex, the U.S.-based fintech unicorn that disrupted corporate finance by modernizing business banking. While Brex has ventured into adjacent services like cash management, Float appears focused on refining its core offerings for Canadian businesses—a market that TechCrunch has described as ripe for disruption (TechCrunch).
“Canada’s financial ecosystem is ready for transformation,” said Khazzam. “We’re addressing decades of unmet demand for tools that make financial management seamless for businesses of all sizes.”
Investor Confidence
The participation of Tiger Global in this funding round underscores investor confidence in Float’s market position and long-term potential. As Bloomberg highlights, Tiger Global’s investments are often associated with high-growth companies poised to dominate their markets. A partner at the firm stated, “Float has demonstrated exceptional growth in a market that has been historically underserved. We’re excited to support their vision of transforming business finance in Canada” (Bloomberg).
A Fintech on the Rise
Float Financial’s latest funding round marks a pivotal moment not just for the company but also for Canada’s fintech ecosystem. By addressing the pain points of Canadian businesses and filling gaps left by traditional financial institutions, Float is poised to become a dominant player in business finance, much like Brex has in the U.S.
As the company accelerates its growth, all eyes will be on how Float navigates the challenges of scaling in an increasingly competitive fintech landscape, as noted by Forbes (Forbes).
