Canadian fintech company Relay has raised $50 million in new investment from General Catalyst’s Customer Value Fund (CVF), a financing model designed to support customer acquisition without requiring traditional equity dilution. The funding will primarily be used to scale sales and marketing efforts as the company aims to expand its business banking and money management services.
Relay operates as an online business banking platform offering checking and savings accounts alongside financial operations tools such as accounts payable, accounts receivable, payment requests, and expense management solutions. The company currently serves more than 110,000 businesses and manages over $1 billion in customer deposits.
The investment structure differs from conventional venture capital funding. Instead of taking equity, the Customer Value Fund finances customer acquisition costs upfront and receives a capped share of revenue generated from those new customers. According to General Catalyst, the model is designed so that repayment only occurs if revenue is generated, shifting early growth risk away from the startup.
This approach allows Relay to focus on scaling its product and expanding its customer base without the typical “growth versus burn” tradeoff associated with equity financing. The company stated that the new capital will help accelerate acquisition while continuing to invest in product development and operational improvements.
Relay previously raised $32.2 million in a Series B round led by Bain Capital Ventures in 2024, and the latest funding further strengthens its financial position as it competes in the rapidly growing digital banking and fintech infrastructure space.
The investment reflects a broader trend in fintech funding, where alternative capital models are increasingly being used to support customer-driven growth strategies, especially for platforms targeting small and medium-sized businesses.
