Relay taps General Catalyst fund to boost FinTech expansion

By Parth Prabhudesai

Canadian FinTech Relay has secured a $50 million investment from General Catalyst’s Customer Value Fund (CVF) to accelerate customer acquisition and support continued product expansion.

Unlike traditional funding rounds, the investment does not require Relay to give up equity. Instead, General Catalyst’s CVF model provides capital to fund sales, marketing and customer acquisition costs in exchange for a capped share of revenue generated from new customers.

According to General Catalyst, the structure is designed to reduce financial pressure on growth-stage firms. If new customer acquisition does not generate revenue, the investment firm absorbs the downside risk.

Relay said the funding removes the typical “growth-versus-burn” tradeoff faced by startups relying on conventional equity financing. The company plans to use the capital to expand its customer base while continuing to invest in product innovation and operational growth.

Founded in 2018, Relay provides online business banking and money management tools for small and medium-sized businesses. Its platform includes business checking and savings accounts, accounts payable and receivable tools, expense management, and payment request services.

The FinTech says it currently serves more than 110,000 businesses and manages over $1 billion in customer deposits.

The investment follows Relay’s $32.2 million Series B funding round in 2024, which was led by Bain Capital Ventures.

The deal also reflects growing interest in alternative financing models for FinTech firms, particularly as startups seek growth capital without further equity dilution amid a more selective funding environment.