Codat collects £2.5m investment just months after former funding round

Codat, which helps connect internal systems of small businesses to banks and FinTechs, has secured a £2.5m investment, coming just a couple of months after its previous fundraise.

The fresh capital was supplied by Banking Competition Remedies (BCR) and will be used to help Codat open up its APIs to a self-serve basis. This will enable more FinTechs to build new services and products for SMEs and enable more companies to use the Codat offering, the company claims.

Codat raised $10m in funding back in June 2020, with capital coming from seasoned FinTech investor Index Ventures. It raised the capital to expand into the US and hire more staff.

Based in London, the FinTech enables business data to flow back and forth with small businesses and banks and FinTechs in real-time. Its connected datasets are helping companies to make more use of data and working with other companies.

The company has more than 60 clients around the world, ranging from traditional lenders to invoice financing, insurance to cashflow forecasting.

The company is looking to build an additional five accounting integrations so more companies can use its software.

Codat CEO Pete Lord said, “Developers, not bankers, are going to be the people to build the financial products we need for small businesses here in the UK. BCR has recognised that by awarding this money to Codat, they are benefiting potentially hundreds of products instead of just one.”

The company previously received a £5m grant from BCR in 2019.

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