Fintech Codat has secured $40 million in a Series B funding round led by Tiger Global and also announced the expansion of its API infrastructure for SME data, to include payroll and commerce data.
Existing investors Index Ventures and PayPal Ventures took part in Codat’s latest fundraising.
The company said it intends to use the funds to expand its US presence following the launch of the New York office in January this year, add new data products to its API, accelerate hiring and onboard new customers, while it also has plans to expand its San Francisco office.
John Curtius, partner at Tiger Global, said: “The number of SMB-focused software products will continue to proliferate, and we expect many of these products to be powered by Codat in the future.
“Codat’s customers consistently told us that Codat’s value proposition is incredibly compelling – a faster and better solution at a fraction of the cost as compared to a do-it-yourself approach.”
The fintech’s single standardised API connects the software packages that SMEs use, enabling its clients to access a range of small business products, such as loan applications, expense management, accounting and point-of-sale platforms.
Codat’s API powers the services of five of the largest financial institutions, 12 technology unicorns, and specialised SME providers, including Brex, Clearco, Zettle by PayPal, FreeAgent, Pipe and Virgin Money.
Peter Lord, CEO of Codat, added: “Financial services for SMBs are now changing more and more quickly, and we’re privileged to work with the people and companies who are driving this change to make life better for small businesses.
“As Codat is the platform on which more and more of this revolution is built, this investment accelerates the industry transformation.”