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In the era of fintech, which is transforming the business landscape, Float Financial has emerged as a key player in the fintech ecosystem of Canada. Founded in 2019 by University of Waterloo graduates, Float offers a comprehensive suite of financial services tailored to meet the dynamic needs of Canadian businesses. The recent CAD $70 million Series B funding round underscores the company’s rapid growth and its commitment to revolutionizing business finance in Canada.
Company overview
Float Financial is an integrated platform that aims to simplify a company’s operations in expense management, corporate credit cards, and other financial affairs. Its offerings are meant to increase efficiency and provide real-time insights into spending by the company, while giving flexible alternatives for traditional banking. Float Financial enables businesses to become more agile and in control by using a very user-friendly interface, focusing on automation.
Read also: Y combinator backed fintech startup Fazeshift has raises $4M funding
Funding Details
The Series B round saw CAD $70 million, led by Growth Equity at Goldman Sachs Alternatives. The group is known for financing high-potential growth companies. Additional participating investors were OMERS Ventures, FJ Labs, Teralys, and existing investor Garage Capital. Float’s funding, over the past 12 months, amounts to approximately CAD $120 million after securing a CAD $50 million credit facility in February 2024
Strategic Objectives
Float Financial aims to:
- Expand Product Suite: Offer a wider variety of financial products to meet the growing needs of Canadian businesses in a more holistic manner.
- Attract Top Talent: Recruit talented professionals in different fields to fuel innovation and propel the company’s growth trajectory.
- Enhance Market Leadership: Strengthen its presence across Canada, reaching businesses nationwide and establishing itself as a leader in the business finance sector.
Growth Metrics
Float has grown at an incredible pace since its Series A funding in November 2021:
- Total Payment Volume (TPV): It has risen 45-fold, which means the payment solutions offered by Float are being adopted all over the country.
- Revenue: It has grown 50-fold, which is a reflection of the growing market penetration and customer base.
- Assets Under Management (AUM): Increased 30 times, signifying growing confidence from businesses to outsource management of their financial assets via Float.
- Credit Origination: Grew 140 times, pointing to the capability of the platform to satisfy credit requirements for businesses in Canada.
These numbers depict how Float successfully addresses the business’s financial concerns and how fast it scales within a competitive landscape.
Read also: Israeli fintech startup justt raised $30 million in a Series C funding
Product Expansion and Innovation
In 2024, Float significantly enhanced its platform by introducing features such as:
- Automated Accounts Payable: Streamlining the process of managing and paying invoices, reducing manual effort and errors.
- Frictionless Reimbursements: Simplifying employee expense reimbursements, ensuring timely and accurate payments.
- Real-Time Spending Insights: Providing businesses with up-to-date analytics on expenditures, facilitating informed financial decisions.
Float has expanded to include virtual and physical corporate cards in CAD and USD, high-yield accounts, and next-day fund transfers and payments. These additions present faster and more flexible alternatives to traditional banking services, thus making it easier for businesses to be more efficient and agile financially.
Clientele and Market Adoption
Float’s platform is trusted by over 4,000 Canadian businesses, including notable brands such as Jane Software, LumiQ, and Knix. The widespread adoption of Float’s solutions across various industries reflects its versatility and effectiveness in meeting diverse business finance needs.
Industry Context and Competitors
The business finance platform sector has been growing greatly, with multiple fintechs emerging to accommodate the changing demands of businesses. In the market of Canada, Float competes with domestic players and international firms offering similar products. The recently raised funding as well as its rapid growth rates place Float competitively ahead in the market relative to its rivals, indicating much potential for acquiring a large piece of the pie.
Read also: Parafin, a San Francisco-based fintech startup raises $100M funding
Future Perspective
Float Financial is ready to speed up the transformation of business finance in Canada with the heavy capital infusion provided by the Series B funding round. The company will continue innovating its products, expand the market, and attract the top talent for supporting growth. With efficient, flexible, and user-friendly financial solutions, Float looks to empower Canadian businesses to thrive in their locality while competing globally.
Summary
Float Financial’s successful CAD $70 million Series B funding round is a landmark achievement in its pursuit of revolutionizing business finance in Canada. A robust platform, impressive growth metrics, and investor backing are well positioned to continue the trajectory of innovation and market leadership in Float, helping Canadian businesses to effectively and efficiently manage their finances.
