Codat, a UK-based technology company that connects the internal systems of small businesses to banks, fintechs, and other financial institutions, announced on Tuesday it received strategic investments from PayPal Ventures and American Express Ventures. According to Codat, American Express Ventures and PayPal join the previous investor in the company’s Series A international venture firm Index Ventures. Codat also revealed it has formally launched its U.S. operations.
As previously reported, 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.”
Codat secured $10 million in venture funding last summer, with the funds coming from Index Ventures. Speaking about the new investments, Codat Founder and CEO, Peter Lord, stated:
“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 did not disclose the strategic investment’s total amount at this time.