Toronto-based Float Financial Solutions Inc. has secured $85 million in a Series C funding round, elevating the company’s valuation to $548 million. The equity financing was led by Montreal venture capital firm Inovia Capital, with participation from existing investors Goldman Sachs Alternatives and Garage Capital, as well as new contributors BDC Capital and Northleaf Capital Partners. The financing effort has closed $75 million so far, with the remaining $10 million expected in the coming weeks. Proceeds from the round will be directed to Float’s treasury to support further growth rather than to existing shareholders.

Float’s current valuation marks an approximately 70 percent increase over its $322 million worth following a $70 million funding round announced in January 2025. That previous round was led by Goldman Sachs and included investors such as FJLabs, OMERS Ventures, Teralys Capital, and Garage Capital.

Founded in 2019, Float initially focused on providing corporate payment cards and expense management solutions for small- and medium-sized businesses. It has since expanded its suite of products to include bill payments, business accounts, and, most recently, an artificial intelligence-powered automation layer called Float Intelligence. Launched just two months ago, this AI tool integrates with the company’s software to enhance financial management capabilities.

This new capital injection will be used to advance Float’s AI offerings, bolster its presence across Canada, and increase its workforce in product development, research and development, sales, and marketing. Currently employing about 170 people, Float aims to expand beyond its strong foothold in Ontario into Western Canada and Quebec.

CEO Rob Khazzam highlighted the growing recognition among Canadian businesses of the potential to leverage technology for improved financial autonomy and efficiency. “It’s a moment that’s been a long time coming,” he said, emphasizing a shift in the market’s openness to fintech solutions as alternatives to traditional banking services.

Float’s platform now serves more than 7,500 Canadian businesses, doubling its client base since December 2024. Its customer list includes notable companies such as Cohere, Knix, and Neo Financial. While the Canadian fintech space remains relatively less crowded compared to the U.S., where companies like Ramp Business Corp. operate in similar domains, Float has positioned itself as a leading domestic player.

Inovia’s partner Dennis Kavelman, a former BlackBerry Ltd. chief financial officer, will join Float’s board of directors as part of the transaction. Kavelman described Float’s rapid growth as a reflection of both a strong product offering and a capable leadership team. He also noted the alignment of Inovia’s focus on building major Canadian technology firms with Float’s ambitions.

Khazzam credited his personal connection with Kavelman as instrumental in securing the investment, citing shared values and a mutual desire to unlock Canada’s technological potential. “Our first discussions, we weren’t talking about financing,” Khazzam said. “We were talking about our personal upbringing and wanting Canada to keep its full potential.”