London-based Codat has raised $100 million in a Series C funding round led by JP Morgan Growth Equity Partners, while fintech Plaid has been publicly announced as an investor for the first time, having invested in a prior round.
Canapi Ventures and Shopify also participated in the round, in which existing investors Index Ventures and PayPal Ventures took part.
Patrick McGoldrick, partner at JP Morgan Growth Equity Partners, will join Codat’s board as part of the fundraising.
“We believe Codat has the potential to fundamentally change the way data is shared across the small business economy,” McGoldrick said.
“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.”
The funding comes less than a year after Codat, a universal API for small business data, secured $40 million in a Series B investment round last July led by Tiger Global, alongside American Express and PayPal Ventures.
Codat CEO Pete Lord called it “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,” he said.
“No-one will be speaking about SMB financial software integrations in five to 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.”
Lord added: “With the impressive calibre and strong sector expertise that JP Morgan and Patrick bring to our board, alongside our other advisors, we couldn’t be in a better position to capitalise on the massive opportunity in front of us.”
Plaid and Codat already have a business partnership, with Plaid’s product integrated into Codat’s API, enabling clients to access banking, accounting and commerce data via a single integration, and count Rho Business Banking and Atom Bank among their joint customers.
Plaid’s head of business and corporate development Jason Pate said: “Digitizing financial services has proven to save people time, money and financial stress, and should unlock even more benefits for small businesses.
“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.”
Main image, left to right: Codat co-founders COO Alex Cardona, CEO Pete Lord and Dave Hoare CTO.