PayPal, American Express back Codat

UK-based Codat , the API-based platform for business data, announced investments from PayPal Ventures and American Express Ventures .  Financial details were not disclosed. Along with the announcement of these new investments, Codat also formally launched its US operations.

Founded in 2017, Codat (a team of  ~94) streamlines how SMBs connect with financial institutions and fintechs that serve them. Codat’s API connects the tools and services that small businesses need for their operations and handles integrations to leave providers free to focus on improving their offerings for small businesses. Its customers include lenders, insurers (TradeLock, Nimbla), providers working in payments, point of sale software, corporate cards, debt collection, venture capital, automation, and expense management.

“We’re excited to welcome American Express Ventures and PayPal Ventures as investors to further our mission to make life easier for small businesses. It’s clear that small businesses are the backbone of global economies, and in the next few years, we believe there will be a dramatic acceleration in the quality of financial products they are offered. We believe it starts with an industry-wide shift from siloed data to a more connected ecosystem. Our new investors further fuel our ambition to improve operations for SMBs everywhere.” – Codat founder and CEO Peter Lord.

“Small businesses continue to seek more intuitive financial services solutions. Codat’s integrations have the potential to create value for financial providers, helping them deliver enhanced experiences and more efficient services for small and medium businesses.” – Dana Eli-Lorch, Managing Director at Amex Ventures.

Zettle, a PayPal payments company that serves SMBs, leverages Codat’s technology to transfer point of sale transaction data into their merchants’ accounting software. This helps Zettle deliver a faster, more convenient experience for customers.

“The data connectivity Codat enables is a game changer for small-to-medium businesses who want the flexibility to use their preferred tools to run and grow their business. Through Zettle’s integration with Codat, we have seen first-hand how Codat drives important efficiencies for our mutual customers. We’re excited to invest as Codat brings its solution to more businesses that are looking to streamline their data connectivity across multiple business software providers.” – Peter Sanborn at PayPal Ventures.