Codat raises $10 million in Series A funding
Financial data fintech Codat has raised $10 million in Series A funding from Index Ventures.
The start-up is building an application programming interface (API) to connect together financial information and increase the speed at which insurance providers and banks can provide loans or products.
For small businesses who currently share their information over email and via Excel documents and PDFs, Codat says its approach allows for “radically simplified and improved interactions.”
Codat was founded in 2017 by Peter Lord (CEO), Alex Cardona (COO) and David Hoare (CTO), who had worked together at what is now MarketFinance, a peer-to-peer invoice finance platform.
The London-based firm is working with around 50 companies, including iZettle and Experian, as well as two as-yet unnamed major UK banks.
The funding round is the firm’s first since it was granted £5 million as part of the RBS-derived Capability and Innovation Fund.
“The way small businesses interact with banks has been broken for a long time,” says Peter Lord, CEO and co-founder of Codat.
“They operate in a system that’s clumsy and unable to scale. Coronavirus has exposed those weaknesses for all to see, and accelerated the urgency of digitisation.”
The startup is planning to use its new capital to open an office in the US, and expand its connectivity to a wider range of data sources.