Float Financial Announces $70 Million Investment Round Led by Growth Equity at Goldman Sachs Alternatives to Build Canada’s Most Complete Business Finance Solution

Rhea-AI Summary

Float Financial, a Canadian business finance platform, has secured a CAD $70 million Series B financing round led by Growth Equity at Goldman Sachs Alternatives, with participation from OMERS Ventures, FJ Labs, Teralys, and Garage Capital. This funding, combined with a CAD $50 million credit facility announced in February 2024, brings total funding to over CAD $120 million in the past year.

Since their November 2021 Series A, Float has achieved remarkable growth metrics: 45x growth in total payment volume, 50x revenue growth, 30x increase in assets under management, and 140x expansion in credit issuance. The company serves 4,000 businesses, including prominent brands like Jane Software, LumiQ, and Knix.

Float plans to use the new capital to expand its product suite, attract talent, and strengthen its leadership in the Canadian market. The company offers expense management software, corporate cards in CAD and USD, high-yield accounts, and next-day fund transfers.

Positive

• Secured CAD $70M Series B funding at higher valuation than Series A
• 50x revenue growth since Series A (Nov 2021)
• 45x growth in total payment volume
• 30x increase in assets under management
• 140x expansion in credit issuance
• Additional CAD $50M credit facility secured
• 4,000 active business customers

Negative

• None.

Insights

Financial Analyst

This CAD$70M Series B funding round, coupled with the CAD$50M credit facility, represents a compelling validation of Float Financial's business model in the competitive fintech space. The company's extraordinary growth metrics are particularly noteworthy - 45x growth in TPV, 50x revenue growth and 30x increase in AUM since their Series A round showcase exceptional execution capabilities. The higher valuation achieved during challenging market conditions is remarkable.

Goldman Sachs Alternatives' lead investment carries significant strategic value beyond the capital injection. Their deep expertise in financial services and extensive network could accelerate Float's market penetration and product development. The participation of established investors like OMERS Ventures adds institutional credibility and suggests strong due diligence.

For Goldman Sachs (GS) shareholders, this investment aligns with the firm's strategy to capitalize on the fintech revolution while maintaining exposure to the growing Canadian market. The deal structure through GS Alternatives suggests potential upside through carried interest and management fees, contributing to the firm's asset management revenue diversification efforts.

Market Research Analyst

The Canadian B2B fintech market represents a significant untapped opportunity and Float's positioning is strategically sound. The company's focus on comprehensive business finance solutions addresses a critical gap in the market, particularly for SMEs seeking alternatives to traditional banking services. The impressive 140x expansion in credit issuance indicates strong market demand and effective risk management.

Float's expansion into USD services and high-yield accounts demonstrates market awareness and positions them to capture cross-border business opportunities. The client roster, including established brands like Knix and Jane Software, provides credibility and suggests potential network effects. For Goldman Sachs, this investment offers exposure to the rapidly evolving Canadian fintech ecosystem while leveraging their global financial services expertise.

• Growth Equity at Goldman Sachs Alternatives leads this funding round of over CAD$70M, joined by other prominent investors including OMERS Ventures, FJ Labs, Garage Capital and Teralys.
• With the CAD$50M credit facility announced in February 2024—bringing total funding to over CAD$120M in the past year—this investment highlights Float Financial’s significant potential despite economic uncertainty.
• Float will use the money to accelerate its product expansion, continue to attract top talent and expand its leadership in the Canadian market coast-to-coast.

TORONTO--(BUSINESS WIRE)-- Float Financial, a business finance platform for Canadian businesses, today announced it has signed a CAD $70 million Series B financing round, which brings its total funds raised in the last 12 months to $120 million. The round is led by Growth Equity at Goldman Sachs Alternatives, with participation from OMERS Ventures, FJ Labs, Teralys and existing investor Garage Capital. Float’s range of business finance products is already trusted by big Canadian brands like Jane Software, LumiQ, Knix and more.

Float brings much-needed change to how Canadian businesses of all sizes spend, save and grow their money with a combination of innovative financial services and software. Since their November 2021 Series A, Float has seen 45x growth in total payment volume (TPV), 50x revenue, 30x increase in assets under management (AUM) and 140x expansion in credit issuance—all while achieving top quartile performance in capital efficiency. Float’s Series B investment round demonstrates its significant potential, with a higher valuation compared to its Series A, despite macroeconomic uncertainty.

In 2024, Float significantly expanded its expense management software and corporate cards offering to streamline how Canadian businesses manage their finances. With the addition of features to automate accounts payable, make reimbursements frictionless and surface real-time insights into company spending, Float helps businesses simplify their financial operations. Float now also offers virtual and physical cards in both CAD and USD, high-yield accounts and next-day fund transfers and payments, providing faster, more flexible alternatives to traditional banking services. The company plans to leverage the new capital to further broaden its product suite, attract top talent and expand its leadership in the Canadian market.

“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,” said Rob Khazzam, CEO of Float. “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.”

“Float’s impressive growth so early on is a testament to its Canadian focus, customer-centric platform and deeply committed team,” said Clare Greenan, an investor with Growth Equity at Goldman Sachs Alternatives. “We are thrilled to support Float in its next phase of expansion, as it makes innovative business finance solutions more accessible to Canadian businesses.”

In February 2024, Float secured a $50 million credit facility in partnership with Silicon Valley Bank (SVB), a division of First Citizens Bank. Existing venture capital and institutional shareholders from Series A, including Golden Ventures, Susa Ventures, and Tiger Global, demonstrated their confidence in Float’s future by remaining fully invested.

About Float Financial

Float is complete business finance for Canadian companies. We offer modern financial services, powerful software and industry-leading support designed for every company and stage of growth. Our integrated suite of products—including corporate cards, bill pay, expense management and high-yield accounts—gives finance teams everything they need to manage spending and cash flow efficiently, so they can keep pace with the demands of their business. To learn more, visit floatfinancial.com.

About Growth Equity at Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has more than $3.1 trillion in assets under supervision globally as of September 30, 2024.

Since 2003, Growth Equity at Goldman Sachs Alternatives has invested over $13 billion in companies led by visionary founders and CEOs. The team focuses on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250113579768/en/

Media

Dana Krook

Content & Communications Lead

dana.krook@floatfinancial.com 416-992-7471

Source: Float Financial

FAQ

How much did Float Financial raise in their Series B round led by Goldman Sachs (GS)?

Float Financial raised CAD $70 million in their Series B round led by Growth Equity at Goldman Sachs Alternatives.

What is Float Financial's total funding amount in the past 12 months?

Float Financial secured total funding of CAD $120 million in the past 12 months, including the Series B round and a CAD $50 million credit facility.

What growth metrics has Float Financial achieved since its Series A?

Since Series A in November 2021, Float achieved 45x growth in total payment volume, 50x revenue growth, 30x increase in assets under management, and 140x expansion in credit issuance.

How many businesses currently use Float Financial's platform?

Float Financial currently serves 4,000 businesses, including notable Canadian brands like Jane Software, LumiQ, and Knix.

What will Float Financial use the Goldman Sachs (GS) led investment for?

Float Financial will use the investment to expand its product suite, attract top talent, and strengthen its leadership position in the Canadian market.