PayPal and AmEx joined the existing investors in Codat’s Series A financing round, which led by venture capital firm Index Ventures
API-based business data platform Codat has secured strategic investments from PayPal Ventures and American Express (AmEx) Ventures.
PayPal and AmEx have joined the existing investors in the company’s Series A financing round, which was led by venture capital firm Index Ventures.
Along with the new investment, Codat has also formally started its operations in the US.
Amex Ventures managing director Dana Eli-Lorch said: “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.”
Codat is the fintech start-up established in 2017. Based in London, it is focused on small and medium business data ecosystem.
The firm supports small- and medium-sized businesses by facilitating critical data exchange between SMBs and the financial institutions and FinTechs.
It offers an API that connects the required tools and services for small businesses and handles the heavy lifting of integrations.
Codat serves lenders, insurers, providers in the areas of payments, point of sale software, corporate cards, debt collection, venture capital, automation, and expense management.
PayPal’s payments company Zettle serves SMBs by leveraging Codat’s technology for sending point of sale transaction data into the merchants’ accounting software.
PayPal Ventures member Peter Sanborn said: “The data connectivity Codat enables is a game-changer for small-to-medium businesses who want the flexibility to use their preferred tools to run and grow their business.
“Through Zettle’s integration with Codat, we have seen first-hand how Codat drives important efficiencies for our mutual customers.
“We’re excited to invest as Codat brings its solution to more businesses that are looking to streamline their data connectivity across multiple business software providers.”
Earlier this year, Virgin Money has teamed up with the business data platform to strengthen its digital business banking offering, and better serve its business bank customers.