The funding will help the fintech expand its presence in the US, increase its headcount and launch new products.
Image source: Peter Lord/Codat
Financial API provider Codat has closed a $40m Series B funding round following a year of impressive growth.
The fintech’s latest funding efforts were led by Tiger Global, which has invested in the likes of Stripe, Brex and Checkout.com, and also saw participation from Index Ventures and PayPal Ventures.
Codat has grown threefold over the last year and doubled its headcount, now counting five of the world’s largest financial institutions, 12 technology unicorns and countless other SME providers as customers.
“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,” Peter Lord, CEO of Codat, said.
“As Codat is the platform on which more and more of this revolution is built, this investment accelerates the industry transformation.”
With the new cahs, Codat plans to expand its current product offering, increase its headcount and deepen its involvement in the US market, further expanding its San Francisco office as more and more startups are choosing to partner with Codat.
“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,“ John Curtius, partner at Tiger Global, added.
“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.”
Earlier this year Codat teamed up with fellow financial API provider Plaid, enabling small businesses to share a broader view of their finances, including bank data from Plaid and accounting and e-commerce data from Codat, instantly with third-party lenders.
The fintech also officially launched in the US as of March this year, just two months after the fintech first opened its New York office.