- Codat announced recently that it has raised $40 million from investors. These are the details.
Codat — a technology company that enables small businesses to seamlessly share business and financial data with financial and other service providers — announced that it has raised $40 million from investors following 3x annual growth and doubling of headcount. And it has also announced the expansion of its APIs to include payroll and commerce data, thus broadening the data sets that flow through Codat.
The Series B round of funding was led by Tiger Global. And existing investors Index Ventures and PayPal Ventures also participating.
With this round of funding, Codat plans to expand its US presence following the launch of the New York office in January this year, deploy new products to its API, accelerate hiring, and bring on new customers. As part of the growth strategy, the company is also going to expand its San Francisco office.
Codat’s API powers services of 5 of the world’s largest financial institutions, 12 technology unicorns, and many specialized SME providers. This includes Brex, Clearco, Zettle by PayPal, FreeAgent, Pipe and Virgin Money. And clients utilize 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.
Codat is on a mission to make the lives of small businesses easier and enable suppliers to small businesses through a single standardized API to connect with all the software packages SMEs use. And 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. And on average a typical small business now uses over 40 different applications.
KEY QUOTES:
“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. 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.”
— John Curtius, Partner at Tiger Global
“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.”
— Peter Lord, CEO of Codat
