Codat, a UK-based technology company that connects the internal systems of small businesses to banks, fintechs, and other financial institutions, announced on Thursday it secured $10 million in venture funding. The funding comes from international venture firm Index Ventures, the backer of Adyen, Plaid, and Robinhood.
Founded in 2017, Codat states it is focused on making financial and accounting software integrations as simple as a click of a button. The company provides its services to a wide variety of clients, including banks, insurers, business lenders, and software providers.
“Codat uses a single API to directly ‘plug in’ to the software used by small businesses – allowing financial organisations to access everything from the company’s accounting software to payment terminals recording real-time transactions.”
Speaking about the investment round, Peter Lord, CEO and co-founder of Codat, stated:
“At Codat, we’re trying to shift the model for business communication from being like exchanging letters in the post, to instead having an intelligent real-time platform that automates communication and builds trust between the parties.”
Jan Hammer, Partner at Index Ventures, also commented:
“We believe Codat represents a step-change that will dramatically expand businesses’ access to capital, customers and new commercial possibilities.”
Codat further revealed the new funds will help it expand to the U.S. as well as build a business data “superhighway” between businesses and financial providers.