BankTech

SMB financial data transfer company Codat raises $40M in Series B

Codat, a company which allows small- and medium-sized businesses to share their financial data with banks, financial institutions and other external organizations through its API, announced raising a $40 million Series B funding round led by Tiger Global, according to a press release.

The company says it will use the funding to onboard new customers, expand its US presence, add new data products to its API and accelerate hiring. After opening its New York office in January, Codat will expand its San Francisco office to better serve the growing number of next-gen startups in the area. The company has doubled its team size and seen three-fold annual growth in the past year.

Codat’s core API service enables small- and medium-sized businesses to quickly and easily share internal financial data with external service providers and institutions. Codat also announced today it is integrating a range of its other services into the API product, in order to maximize usage of its core service, according to TechCrunch.

The services being added include a visualization tool which gives customers display data on company data and “Insights,” a tool which cross-references data from multiple sources and services.

The capital injection brings Codat to almost $60 million in total funding raised and also includes participation from Stripe, Brex and Checkout.com, and existing investors Index Ventures and Paypal Ventures. The Series B follows a $10 million Series A led by Index in June last year, and a recent March grant round led by American Express and PayPal for an undisclosed amount.

Codat’s API service is used by five of the world’s large financial institutions, 12 tech unicorns and a number of specialized SME providers, which includes Brex, Clearco, Zettle by PayPal, FreeAgent, Pipe and Virgin Money, according to the release.

In other recent fintech news, insurtech modeling software developer hyperexponential raised $18 million in a funding round led by Highland Europe. Credit building platform Kikoff also announced its launch following $42.5 million in funding.

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