Float Financial, a Toronto-based fintech startup focused on the Canadian market, has raised $48.5 million in a Series B funding round led by Goldman Sachs Growth Equity. This significant investment brings the company's total venture funding to $92.6 million since its inception in 2020.

The funding round also saw participation from OMERS Ventures, FJ Labs, Teralys, and existing investor Garage Capital. While the company declined to reveal its valuation, CEO and co-founder Rob Khazzam confirmed that it was an "up round" from its $30 million Series A raise led by Tiger Global in November 2021.

Float Financial likens itself to U.S.-based fintech giants Brex and Ramp, but with a distinct focus on Canadian small and medium-sized businesses (SMBs). Khazzam emphasized that Canadian SMBs are often "overlooked due to Canada's banking monopoly and tough economic climate." This oversight presents a significant opportunity for Float Financial to fill the gap and provide tailored solutions for Canadian businesses.

Since its Series A raise, Float Financial has seen remarkable growth, with revenue increasing by 50x, total payment volume by 45x, and assets under management by 30x. The company has expanded its product offering from corporate cards and expense management to include bill pay, high-yield accounts, accounts payable automation, and virtual physical cards in both Canadian and U.S. dollars. Its customer base has grown to over 4,000, including notable clients such as Jane Software, LumiQ, and Knix.

Khazzam dismissed concerns that Canadian businesses are not a good place to invest, citing the "rich and diverse" landscape of Canadian SMBs, which is "chock full of potential." He emphasized that Float Financial's distinctly Canadian approach is critical to addressing the unique needs of Canadian businesses and enabling them to thrive locally and compete globally.

Laura Lenz, partner at OMERS Ventures, highlighted Float Financial's ability to work within the Canadian regulatory framework and understand the nuances of the market as key factors in its success. She noted that Float Financial's products are designed to help Canadian businesses keep pace with their U.S. counterparts and remain competitive on the global stage.

The new capital will be used to further expand Float Financial's product offering and regional presence within Canada, as well as continue hiring. This investment is a significant vote of confidence in the company's mission to revolutionize expense management and corporate cards for Canadian SMBs.

As the Canadian fintech landscape continues to evolve, Float Financial's success serves as a testament to the potential of innovative solutions tailored to the unique needs of Canadian businesses. With this significant funding round, Float Financial is well-positioned to drive growth and expansion, further solidifying its position as a leader in the Canadian fintech space.