In the realm of corporate spend management, the U.S. boasts numerous startups, with Brex, Ramp, and Mercury leading the charge for both small and large enterprises. However, the Canadian market presents more limited, yet expanding options. Among the rising contenders is Keep, a Toronto-based startup focused on financial solutions for small and medium-sized businesses (SMBs). Recently, Keep announced it has secured $23 million in equity funding, along with a $50 million credit facility and a $3 million venture debt line, which was disclosed exclusively to TechCrunch.
This year, Keep completed a Series A1 round, raising $12 million, building on its previous Series A funding of $8 million led by Tribe Capital in May 2023, alongside an $8 million seed round in November 2021. The credit line was provided by Treville Capital Group while Silicon Valley Bank facilitated the venture debt. Co-founder and CEO Oliver Takach noted a significant rise in valuation for Keep, revealing a 5x increase since their Series A and a remarkable 20x revenue growth.
Takach, an experienced entrepreneur, previously founded two startups under the Y Combinator accelerator and dealt with the challenges of traditional banking solutions before establishing Keep alongside Helson Taveras in 2021. The startup aims to address these financial obstacles with its innovative platform, which includes a corporate credit card launched in 2023, multi-currency accounts, automated expense management, and various accounting software integrations.
To date, Keep has generated over $14 million in annualised revenue, serving over 3,000 SMB clients that span diverse sectors and engage in international trade. The firm generates revenue via interchange fees from corporate card usage, charges for capital advances and short-term loans, and earns income through premium payment services.
Keep’s closest competitor in Canada is Float Financial, but according to Takach, Keep’s unique selling point lies in its multi-currency functionality, enabling clients to conduct cross-border operations effectively.
The recent funding round led by Tribe Capital saw contributions from both existing and new investors, including Rebel Fund, Liquid 2 Ventures, Cambrian, and Assurant Ventures. Prominent angel investors like Dropbox co-founder Arash Ferdowsi and Webflow’s CEO Vlad Magdalin also participated in this investment round.
Arjun Sethi of Tribe Capital remarked that efficiently managing financial tasks such as payments and currency exchanges has become essential for companies, signalling a shift towards vertically integrated services as the new industry standard. Looking to the future, Keep is set to develop banking products and enhance its offerings with features like embedded credit solutions and bill payment services.
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