keep Raises $12M to Disrupt Canadian Corporate Spend

Canadian Fintech Keep Secures $28 Million to Empower SMBs

Within the United States, a growing number of startups are vying to become the preferred corporate spend management solution for businesses of all sizes. Companies like Brex, Ramp, and Mercury are prominent examples in this competitive landscape.

However, when considering the Canadian market, the number of available options is currently more limited, though steadily increasing.

Keep: A Financial Platform for Canadian SMBs

Keep is a startup focused on providing a dedicated financial platform tailored to the needs of small and medium-sized businesses (SMBs). Recently, the company announced a substantial funding round totaling $23 million in equity, alongside a $50 million credit facility and a $3 million venture debt line, as reported exclusively to TechCrunch.

This year, Keep successfully raised $12 million in a Series A1 funding round, spearheaded by Tribe Capital. Prior to this, the company secured $8 million in a Series A round, also led by Tribe Capital in May 2023, and an initial $8 million in seed funding in November 2021.

Funding Details and Company Valuation

The credit facility was provided by Treville Capital Group, while Silicon Valley Bank contributed the venture debt. Keep’s co-founder and CEO, Oliver Takach, refrained from disclosing the company’s current valuation. He did state that Keep experienced a “5x increase in valuation” since the Series A round and a “20x growth in revenue.”

Oliver Takach brings significant startup experience to Keep. Before establishing Toronto-based Keep with Helson Taveras in 2021, he was a two-time participant in the Y Combinator program, founding CareLedger (YCS15) and Origin (YCW17) – both of which are now defunct. He was also involved in the founding of Retriever, a startup later acquired by a marketing firm.

Takach and Taveras identified shortcomings in existing financial tools, particularly those offered by traditional banks, prompting them to develop their own solution.

Keep’s Product Offering and Growth

In 2023, Keep introduced its corporate credit card as a key component of its strategy to function as “the mission control center for a company’s finances.” Beyond the corporate card, Keep provides businesses with multi-currency accounts, automated expense tracking, and seamless integrations with popular accounting software.

By 2024, Keep had surpassed $14 million in annualized revenue and onboarded over 3,000 SMB customers operating across diverse industries, with a significant portion engaged in international commerce. The company generates revenue through interchange fees on corporate card transactions.

Additional revenue streams include fees associated with capital advances and short-term installment loans, as well as charges for premium payment options like instant fund transfers and currency exchange services.

Competitive Landscape and Key Differentiators

Toronto-based Float Financial is considered Keep’s primary competitor in the Canadian SMB market, according to Takach.

A key differentiator for Keep lies in its multi-currency capabilities, enabling customers to “bank like a local” and facilitating smoother cross-border transactions.

Investor Participation

Tribe Capital led Keep’s most recent equity raise, with participation from both existing and new investors, including Rebel Fund, Liquid 2 Ventures, Cambrian, and Assurant Ventures. Notable angel investors also contributed, such as Dropbox co-founder Arash Ferdowsi, Webflow co-founder and CEO Vlad Magdalin, Alloy co-founders Tommy Nicholas and Laura Spiekerman, and Marc Bhargava, a managing director at General Catalyst.

“Modern expense management requires seamless sending and receiving of funds, efficient currency exchange, and controlled employee access to finances,” stated Arjun Sethi, co-founder of Tribe Capital, in a conversation with TechCrunch. “Integrating these services is no longer optional – it’s the new expectation.”

Future Plans

Looking forward, Keep intends to launch a full-fledged banking product and expand its feature set to include embedded credit options and bill payment functionalities.