London-based fintech startup Codat has raised $40M (nearly €33.8M) in its Series B funding round that was led by Tiger Global along with existing investors Index Ventures and PayPal Ventures. The startup claims to have achieved 3x annual growth and doubled its headcount.
With the proceeds, the startup plans 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. Besides that, Codat also plans to expand its San Francisco office.
Recently, the winners of the 2021 Future Hamburg Award were announced.
Peter Lord, CEO of Codat says, “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.”
What Does Codat Do?
Codat is a startup that enables small businesses to seamlessly share business and financial data with financial and other service providers, by using its API. The startup has also announced the expansion of APIs to include payroll and commerce data besides financial data.
Codat’s API claims to provide services to 5 financial institutions, 12 technology unicorns, and several other SME providers which includes Brex, Clearco, Zettle by PayPal, FreeAgent, Pipe and Virgin Money. The startup said that its clients increased the Codat API for a diverse range of small business products ranging from loan applications, accounting, expense management and insurance products to e-commerce and point-of-sale platforms.
In order to ease the lives of small businesses, Codat enables suppliers to small businesses, through a single standardised API, to connect with all the software packages SMEs use. With the help of API, businesses can easily combine their products with all the other applications used by their business customers. The startup claims that on an average, a small business now uses more than 40 different applications.