The software startup's valuation has more than doubled in 11 months, to $825m.
Software startup, Codat has had new weight put behind it, as JPMorgan led its latest $100m funding round, bringing the firm’s valuation up to $825m – more than double where it was at a Tiger Global-led round last July.
New investors Canapi Ventures and Shopify participated in the financing, as did existing backers Index Ventures and PayPal Ventures, and Plaid was publicly announced as an investor for the first time.
“We believe Codat has the potential to fundamentally change the way data is shared across the small-business economy,” said J.P. Morgan Growth Equity Partners’ Patrick McGoldrick, who is joining Codat’s board as part of the financing deal.
“JPMorgan Chase has an extensive small-business customer base, so we understand the power of connecting and standardizing data.”
Founded in 2017, Codat provides software solutions to connect small businesses with financial institutions, facilitating access to consented banking, accounting, and ecommerce platform data. Its API is used by software-as-a-service, lending and payments companies to help build integrated products for SMB customers.
“Today, we’re in the age of ‘dial-up’ when it comes to business data,” said Pete Lord, Codat’s CEO. “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. No one will be speaking about SMB financial software integrations in 5-10 years - automated data flows over the Codat platform will be a presumed standard."
The company says it will use the funds to build out its "critical infrastructure to be the default means of sharing data for the small business economy.
"We're always looking to support companies that are aligned with our mission to make commerce better for everyone," added Jeff Kennedy, corporate development at Shopify. "We're thrilled to participate in Codat's Series C because we know how important it is for our merchants to have all of their systems in sync. Unlocking this connectivity is the key to helping them scale more efficiently."
Codat reports that it now has over 200 clients - including many of the world’s largest banks as well as rapidly growing fintechs - and a team of 250 people across the UK, North America and Australia.