Float Financial, a Toronto-based startup, has secured $70 million in a Series B funding round led by Goldman Sachs Asset Management’s growth equity arm. The financing was also backed by FJ Labs, OMERS Ventures, Teralys Capital, and previous investor Garage Capital. Despite the recent devaluation of many financial technology companies since their pandemic peaks, Float’s valuation has risen to over US$200 million, approximately 30% higher than its previous deal with Tiger Global Management in 2021.
The company now boasts $30 million in annual revenues and serves 4,000 customers across Canada, with a workforce of about 100 people and plans to expand further this year. Float offers virtual and physical corporate charge and credit cards for small and medium businesses (SMBs) that can be assigned to employees and managed through its software. The company’s cards do not require personal guarantees from business owners and are offered as prepaid products to avoid underwriting risks.
Clients can assign unlimited cards to employees in Canada or the U.S., allowing finance managers to track and control spending digitally. Josh Andler, director of finance at Jane Software, a Vancouver-based client, shared that the company earned $7,000 cash back last month using Float, eliminating the need to hire additional finance staff.
float secures $70M to expand services
Clare Greenan, vice-president at Goldman Sachs Growth Equity, commended Float for “doing an incredible job” combining financial services with software and user experience. Float was founded in 2019 by University of Waterloo students Ruslan Nikolaev and Griffin Keglevich. The company began offering card programs for SMBs in 2021 and hired former Uber Technologies Inc.
executive Robbie Khazzam as CEO. Despite the challenging market conditions, Float has continued to grow and adapt, focusing on more traditional small businesses and less on venture-backed clients. In addition to the Series B funding, Float also raised a $50 million off-balance-sheet credit facility last year from Silicon Valley Bank to support a credit program for select clients.
As a result of these strategic moves, Float has experienced nearly 20-fold growth in revenues and a fourfold increase in revenue per employee since 2021. When asked about profitability, CEO Robbie Khazzam stated, “We will be a profitable company one day. Right now, we are focused on our product innovation road map.”
