Codat, a London-based company that’s focused on making financial software integrations simple, has secured $40M (approx £29M) funding in a Series B round.
Investors and fund utilisation
The round was led by Tiger Global, whose other investments include Stripe, Brex, and Checkout.com, with existing investors Index Ventures and PayPal Ventures also participating.
The company will use the funding to expand its US presence following the launch of the New York office in January this year, add new data products to its API, accelerate hiring, and onboard new customers.
Further, the company also plans to expand its San Francisco office as more startups developing products and services for small businesses, choose to run on Codat.
API that powers the financial products and service
Founded by Alex Cardona, David Hoare, and Peter Lord in 2017, Codat is an API platform that provides real-time connectivity to the financial software used by small businesses.
Through this API, they can quickly and easily integrate their products with all the other applications used by their business customers, creating a better, more connected experience.
On average a typical small business now uses more than 40 different applications, says the company. Clients leverage the Codat API for a wide range of small business products, from loan applications, accounting, expense management, and insurance products to e-commerce and point-of-sale platforms.
The UK company powers financial institutions, 12 technology unicorns, and many specialised SME providers including, Brex, Clearco, Zettle by PayPal, FreeAgent, Pipe, and Virgin Money.
The company has tripled its revenues and announced the expansion of its APIs to include payroll and commerce data, broadening the data sets that flow through Codat.
Last month, Codat announced a partnership with TrueNorth, a global fintech software development company. The partnership provides Codat’s FI clients with direct access to a software engineering implementation team to integrate Codat’s single API solution.
“The number of SMB-focused software products will continue to proliferate, and we expect many of these products to be powered by Codat in the future,“ said John Curtius, Partner at Tiger Global. “Codat’s customers consistently told us that Codat’s value proposition is incredibly compelling – a faster and better solution at a fraction of the cost as compared to a do-it-yourself approach.”
Peter Lord, CEO of Codat commented: “Financial services for SMBs are now changing more and more quickly, and we’re privileged to work with the people and companies who are driving this change to make life better for small businesses. As Codat is the platform on which more and more of this revolution is built, this investment accelerates the industry transformation.”