Canadian fintech company Relay has secured a $50 million growth investment from General Catalyst’s Customer Value Fund (CVF) to accelerate customer acquisition and expand its business banking platform for small and medium-sized enterprises.
The funding is designed to help Relay scale its customer base without relying on a traditional equity financing model. Instead of issuing additional shares, the company will use the capital specifically for sales, marketing, and growth-related initiatives while continuing to invest in product development and operational expansion.
General Catalyst’s Customer Value Fund uses a revenue-linked financing structure in which the investment firm receives a capped share of revenue generated from newly acquired customers. The model is intended to reduce dilution for startups while aligning repayment with actual business performance.
Relay said the financing structure allows the company to pursue aggressive expansion without compromising cash flow or long-term ownership. The company believes this approach removes the common startup challenge of balancing rapid growth with careful spending management.
Founded in 2018 by Yoseph West and Paul Klicnik, Relay provides digital business banking and money management tools for small businesses. Its platform combines business checking and savings accounts with financial operations features including accounts payable and receivable management, payment requests, and expense tracking tools.
According to the company, Relay currently serves more than 110,000 businesses and manages over $1 billion in customer deposits. The fintech has positioned itself as a modern financial operations platform designed to simplify day-to-day money management for growing companies.
The latest investment follows Relay’s 2024 Series B funding round, in which the company raised $32.2 million led by Bain Capital Ventures. With the additional capital from General Catalyst, Relay plans to strengthen customer acquisition efforts while continuing to expand its suite of financial products and services.
The funding reflects continued investor interest in alternative fintech financing models and the growing demand for digital banking platforms tailored to the operational needs of small and medium-sized businesses.
