API-based platform for business data, Codat received strategic investments from PayPal Ventures and American Express Ventures.
Amex Ventures and PayPal join a Series A round that was led by Index Ventures last year. Codat, which connects the internal systems of small businesses to banks and other financial institutions, also launched its US operations.
Commenting on the new investment, Codat founder and CEO Peter Lord said, “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. It starts with an industry-wide shift from siloed data to a more connected ecosystem.”
With the aim to ease financial and accounting software integrations, Codat’s API connects the tools and services that small businesses need for their operations with banks, insurers, business lenders, payment providers and point-of-sale software providers therefore allowing financial organisations to access all information such as accounting software, payment terminals and real-time transactions.
Clients including PayPal-owned Zettle use Codat’s technology to transfer point-of-sale transaction data into its merchants’ accounting software.
Managing director at Amex Ventures Dana Eli-Lorch added, “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.”
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