Software start-up Codat has raised $100m (£80m) in a series C investment round led by JP Morgan Growth Equity Partners.
As part of the financing, which also included Canapi Ventures, e-commerce group Shopify and software company Plaid, JP Morgan partner Patrick McGoldrick will join Codat’s board. Existing investors Index Ventures and PayPal Ventures also participated in the fundraise.
Codat, which provides infrastructure to connect small businesses with financial institutions, will use the flush of capital to build out its critical infrastructure and incorporate more integrations into its universal API. For digital lenders, Codat’s software enables them to make faster decisions through the use of real-time access to customers’ accounting, banking, and commerce data and actionable insights.
“Today, we’re in the age of ‘dial-up’ when it comes to business data,” said Pete Lord, Codat’s chief executive. “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 five to 10 years – automated data flows over the Codat platform will be a presumed standard.”
The fresh capital injection comes a year after Codat raised $40m in a series B round led by Tiger Global. To date, the company has raised more than $160m from investors.
JP Morgan’s McGoldrick added: “We believe Codat has the potential to fundamentally change the way data is shared across the small business economy. JPMorgan Chase has an extensive small business customer base so we understand the power of connecting and standardizing data – whether it is used for onboarding new customers or offering insights on business performance. This unique global perspective and Codat’s impressive management team deepened our conviction.”