Toronto-based fintech company Relay has secured $50 million USD in growth financing from General Catalyst to accelerate customer acquisition and expand its banking platform for small businesses.
The funding comes through General Catalyst’s Customer Value Fund (CVF), a financing model designed to support growth without requiring additional equity dilution.
Building A Financial Platform For Small Businesses
Founded in 2018, Relay develops banking and financial management tools tailored to small businesses and entrepreneurs across the United States.
The platform combines business banking, cash flow management, cards, bill payments, capital access, and invoicing into a single financial operating system.
According to co-founder and CEO Yoseph West, the company’s long-term goal is to build what it describes as a “financial command centre” for self-built businesses.
Relay says it now serves more than 150,000 small business customers and manages over $1.3 billion in deposits through its banking infrastructure partner Thread Bank.
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Non-Dilutive Growth Financing
Unlike traditional venture capital financing, the Customer Value Fund structure provides growth capital tied directly to customer acquisition performance.
Relay plans to use the financing primarily across marketing, partnerships, and sales channels to expand its reach among small business customers, while preserving existing capital for product development and long-term strategic initiatives.
General Catalyst will be repaid through a capped share of the lifetime value generated from the customer acquisition investments funded through the programme.
“The structure is designed to align capital with measurable business growth while allowing us to continue investing heavily in product innovation,” West said.
Expanding Beyond Business Banking
Relay says it remains on track to more than triple its revenue between its 2024 Series B financing and the end of 2026, although the company did not disclose specific financial figures.
Over the past two years, the company has expanded beyond core business banking into broader financial operations and cash management products.
Recent launches include Relay Capital term loans developed in partnership with Fundbox and banking partner Lead Bank.
The company says additional product launches are planned later this year.
Betting On Small Business Infrastructure
According to Andrew Ziperski, partner at General Catalyst’s Customer Value Fund, Relay has demonstrated strong product-market fit within the small business segment.
“Relay has built a platform that clearly resonates with small business owners and has developed a strong customer acquisition engine around that,” Ziperski said.
“We are excited to support the company as it scales into its next growth phase.”
About Relay
Relay is a Canada-based fintech company focused on banking and financial management tools for small businesses. Founded in 2018, the company provides integrated business banking, cash flow management, payments, capital, and financial operations infrastructure designed for entrepreneurs and growing businesses.
