Float raises CAD $85 million to expand AI finance platform

Float Financial has raised CAD $85 million in a Series C funding round led by Inovia Capital.

The all-equity round included continued backing from Goldman Sachs Alternatives and Garage Capital, as well as new investment from BDC Capital and Northleaf. The deal lifts Float's valuation by 70% and brings total funding since inception to CAD $300 million, including debt and equity financing.

The Toronto-based financial technology company will use the new capital in three areas: developing Float Intelligence, its artificial intelligence layer for finance workflows; expanding further in Western Canada and Quebec; and hiring across product, research and development, sales, and marketing.

Float provides Canadian businesses with tools to manage spending, payments, and cash on a single platform. Its products include corporate cards in CAD and USD, business accounts, bill payment automation, working capital credit, and cross-border payments.

Growth since its previous funding round has been central to its pitch to investors. Since closing its Series B, Float's active customer base has doubled to more than 7,500 Canadian businesses, while revenue has risen by more than 120%.

Customer balances on business accounts have increased more than 4.5 times, according to the company, while volumes across five products have grown by more than 100%. Nearly a third of customers now use more than one product.

Float employs 170 people. Revenue per employee has increased by 50% as the company has used AI in its operations while continuing to add staff, even as much of the technology sector has seen layoffs.

Its customer list includes Cohere, Knix, Neo, Jane, and Rebel. Float was also named Canada's fastest-growing fintech on the Globe and Mail's Top Growing Companies list.

Chief Executive Officer and Co-Founder Rob Khazzam set out the company's view of the market.

"We are not waiting for our financial system to catch up to the needs of Canadian businesses. We are setting the pace ourselves. We have spent the past five years building what this market required - the infrastructure, the licenses, the products - and Float Intelligence is the AI layer that puts it all to work," Khazzam said.

He also pointed to domestic demand for locally built financial products.

"Canadian businesses are asking harder questions about who they trust with their finances, and they want answers built here, for them. This is the moment we built Float for. With this raise, we can put it in front of thousands more businesses that deserve better," said Khazzam.

"We are not building a single feature. We are building the infrastructure that powers how Canada does business - and proving that the best financial tools for Canadian businesses don't have to come from somewhere else," he added.

Investor backing

For Inovia Capital, the round adds to a growing list of bets on Canadian software and financial technology companies. As part of the transaction, Partner Dennis Kavelman is joining Float's board.

"Float is growing at breakout speed, and that momentum reflects both the strength of its product and the depth of the team behind it," Kavelman said.

"Customers are expanding their use of Float's platform, new products are reinforcing one another, and Float's Canadian-first infrastructure creates a differentiated advantage that will be difficult to replicate. We are proud to partner with Rob and the team as they build a financial operating system designed for Canadian businesses," he said.

Goldman Sachs Alternatives, which led Float's Series B, also increased its investment in the company.

"We led Float's Series B because we saw a team building the financial infrastructure Canadian businesses had long needed. Float has delivered since, growing quickly while customers adopt more of the platform. Reinvesting now reflects our continued conviction in the team and in what they are building for Canada," said Clare Greenan, Vice President, Growth Equity at Goldman Sachs Alternatives.

Market focus

Float's strategy centres on offering a single system for finance teams that would otherwise rely on separate tools. Its platform has been built around Canada's regulatory and bilingual requirements, a point the company has used to distinguish itself in a market where many software products originate in the US.

That domestic focus is also reflected in customer feedback. Jane, one of Float's customers, said the service addressed a gap for Canadian finance teams seeking tools comparable to those available south of the border.

"Float has revolutionised the accounting function at Jane. Over the years, we have watched US companies implement the latest and greatest AP and expense management solutions, and we are thrilled that Float has built these features for the Canadian market to put us on a level playing field," said Josh Andler, Director of Finance, Jane.