Growth Equity at Goldman Sachs Alternatives has led a $48.5m Series B funding round for Float Financial, a Canadian business finance platform.

Other investors include OMERS Ventures, FJ Labs, Teralys, and Garage Capital. This new funding raises Float’s total capital secured over the past 12 months to $83m, including a $34.6m credit facility arranged in February 2024.

Float Financial has demonstrated extraordinary growth since its Series A round in November 2021. Revenue has surged 50x, total payment volume increased 45x, assets under management grew by 30x, and credit issuance expanded by 140x. Currently, over 4,000 businesses, including brands like Jane Software, LumiQ, and Knix, utilise Float’s solutions.

Today, Float serves over 4,000 businesses, including notable Canadian brands such as Jane Software, LumiQ, and Knix.

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The platform provides businesses with modern financial tools, including corporate cards in CAD and USD, high-yield accounts, next-day fund transfers, and advanced expense management software. These services simplify financial operations, offering a competitive alternative to traditional banking. The company aims to use this funding to broaden its product offerings, attract top talent, and solidify its position as a leader in Canada’s business finance sector.

“Our financial system needs to match the speed and ambition of Canadian businesses if we want to thrive locally and compete globally,” said Rob Khazzam, CEO of Float Financial. “This investment supports our mission to empower businesses with faster, smarter financial tools.”

Clare Greenan from Growth Equity at Goldman Sachs Alternatives remarked, “Float’s exceptional growth reflects its strong Canadian focus, customer-centric platform, and dedicated team. We are excited to support their next stage of expansion.”

This funding round highlights the confidence of private equity investors in Float’s innovative approach to business finance. With a higher valuation compared to its Series A, Float reaffirms its resilience and growing dominance in Canada’s fintech space.

Source: Business Wire

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