Codat secures £ 81.21m investment in Series C led by JP Morgan Growth Equity Partners – UK technology investment news

JUNE 8, 2022 Today Codatthe universal API for small business data,
announced that it raised $ 100 million in a Series C investment round led by JP Morgan
Equity Growth Partners. Canapi Ventures and Shopify also participated in the round and the Plaid
was publicly nominated for the first time as an investor. Existing investors Index Ventures e
PayPal Ventures also participated in the round. As part of the funding, Patrick McGoldrick,
Partner of JP Morgan Growth Equity Partners will join Codat’s board.

Codat’s API is used by SaaS, a lending and payment company to create integrated products
their SME customers. Whether it’s a new bank building a cash flow forecast in their app or a
payment service provider that allows merchants to synchronize transactions with their accounting software there
it is a use case for Codat in almost every SME serving fintech. The investment is less than
a year after Codat announced a Series B investment round last July led by Tiger Global,
along with American Express and PayPal Ventures. Codat reports that he now has more than 200
clients, including many of the world’s largest banks and fast-growing fintechs such as
Brex, Jeeves, Pipe and Clover and a team of 250 people across the UK, North America and
Australia.

Codat will use the funds to build its own critical infrastructure to become the default medium
data sharing for the small business economy. In the same way the internet has changed
almost every aspect of how we live and work, Codat’s technology will support the flow of the little one
business data, giving way to tools, skills and opportunities not yet seen or imagined. The
the economic impact of this infrastructure has already been demonstrated. SMEs share and synchronize data with
other systems using Codat’s technology grew on average 2.7 times faster than GDP in
2021.

“Today we are in the age of” dial-up “when it comes to business data.” commented Pete Lord,
The CEO of Codat. “Despite radical advances in other areas of technology, in 2022 the majority
of small business systems still don’t talk to each other, creating hours of painful administration and operations
serious obstacles to growth. Nobody will talk about financial software integrations for SMEs
5-10 years – automated data flows on the Codat platform will be an assumed standard. The
the only time you’ll notice additions is when they’re not there. With the impressive caliber and
the strong industry experience that JP Morgan and Patrick bring to our board, along with our other advisors, we couldn’t be better placed to take advantage of the huge opportunity facing
we.”

The Series C funding round is mostly made up of strategic investors, demonstrating the fact
the adhesion of the collective industry to the growing importance of connectivity in the future of finance e
the growing role of Codat as the default means for integration with small business systems. JP
Morgan, Plaid, and Shopify are all already partners, customers, or collaborating with Codat.

Patrick McGoldrick, Partner of JP Morgan Growth Equity Partners said: “We believe Codat has done it
the potential to fundamentally change the way data is shared within the small business
economy. JPMorgan Chase has a large customer base for small businesses, so we understand
the power to connect and standardize data, regardless of whether it is being used to onboard new ones
customers or offering insights into business performance. This unique global perspective is
Codat’s impressive management team has strengthened our conviction. “

Jeff Kennedy, Shopify Corporate Development, commented, “At Shopify, we always are
looking to support companies that are aligned with our mission to improve commerce
all. We are thrilled to participate in Codat’s Serie C because we know how important it is
so that our merchants have all their systems synchronized. Unlocking this connectivity is the key to
helping them to scale more efficiently. “

Financial technology firm Plaid is a leader in open finance and has previously invested in Codat
round. The companies also have a business partnership whereby Plaid’s product is integrated
in the Codat API, allowing customers to access banking, accounting and commercial data through a
single integration. Rho Business Banking and Atom Bank count among their branches
customers.

“Creating an open data ecosystem for small businesses has lagged behind our progress
seen in the sphere of consumers, despite the fact that SMEs represent more than half of world GDP, “
commented Jason Pate, Plaid’s head of business and corporate development. “Digitization
financial services have been shown 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
look forward to building on several years of successful partnerships and supporting them
in their next phase of growth “.

-END-

ON THE CODAT
Codat is the universal API for small business data. The real-time connectivity that Codat
provides enables software vendors and financial institutions to create integrated products for
their small business customers.

Codat’s customers range from credit institutions to providers of corporate cards and business forecasting tools and
use cases include automatic reconciliation, business dashboard, and loan decision. Codat
was founded in 2017 and has offices in London, New York, San Francisco and Sydney.
The company has raised over $ 160 million to date from investors including JP Morgan Growth Equity
Partners, Canapi Ventures, Shopify, Plaid, Tiger Global, PayPal Ventures, Index Ventures e
American express companies.
For more information visit www.codat.io

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CONTACT
Chelsea Allison
[email protected]
312.775.2856

Codat secures £ 81.21m investment in Series C led by JP Morgan Growth Equity Partners – UK technology investment news

Source link Codat secures £ 81.21m investment in Series C led by JP Morgan Growth Equity Partners – UK technology investment news

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