Codat raises $100 million
Codat, the universal API for small business data, has raised $100 million in a Series C round led by JP Morgan Growth Equity Partners. Canapi Ventures and Shopify also participated in the round and Plaid has been publicly named as an investor for the first time. Existing investors Index Ventures and PayPal Ventures also participated in the round.
Founded in 2017, the London-based startup helps companies access business data from their customers’ banking, accounting, and commerce platforms. Codat’s API is used by SaaS, lending and payments companies to build integrated products for their SMB customers. Some use cases include a neobank building a cashflow forecast in their app, or a payment provider enabling merchants to sync transactions with their accounting software.
“Today, we’re in the age of ‘dial-up’ when it comes to business data. Despite radical advancements in other areas of technology, in 2022 the majority of small business systems still don’t speak to each other, creating hours of painful admin and serious barriers to growth. No one will be speaking about SMB financial software integrations in 5-10 years – automated data flows over the Codat platform will be a presumed standard. The only time you’ll notice integrations is when they are not there. With the impressive caliber and strong sector expertise that J.P. Morgan and Patrick bring to our board, alongside our other advisors, we couldn’t be in a better position to capitalize on the massive opportunity in front of us.” – Pete Lord, Codat’s CEO.
“We believe Codat has the potential to fundamentally change the way data is shared across the small business economy. JPMorgan Chase has an extensive small business customer base so we understand the power of connecting and standardizing data – whether it is used for onboarding new customers or offering insights on business performance. This unique global perspective and Codat’s impressive management team deepened our conviction.” – Patrick McGoldrick, partner at J.P. Morgan Growth Equity Partners.
“At Shopify, we’re always looking to support companies that are aligned with our mission to make commerce better for everyone. We’re thrilled to participate in Codat’s Series C because we know how important it is for our merchants to have all of their systems in sync. Unlocking this connectivity is the key to helping them scale more efficiently.” – Jeff Kennedy, corporate development at Shopify.
“Creating an open data ecosystem for small businesses has lagged behind the progress we’ve seen in the consumer sphere, despite SMBs accounting for more than half of the world’s GDP. Digitizing financial services has proven to save people time, money and financial stress and should unlock even more benefits for small businesses. Pate added, “Codat is a leader in this space and we are looking forward to building on several years of successful partnership and supporting them in their next stage of growth.” – Plaid’s head of business and corporate development, Jason Pate.