London’s Codat has raised $100 million in a Series C round led by J.P. Morgan. The fresh influx will be used to build out what the company terms “critical infrastructure” to be used as the default means of data sharing in the SMB economy. Since early 2019, Codat has raised $176.8 million.
In the war of fintech infrastructure providers, having the support of Tiger Global, American Express, PayPal Ventures, and now J.P. Morgan sitting at the table is more than just a vote of confidence, it can open doors and provide exclusive access to services and partnerships that competitors simply won’t, can’t, or don’t have access to.
“With the impressive caliber and strong sector expertise that J.P. Morgan brings to our board, alongside our other advisors, we couldn’t be in a better position to capitalize on the massive opportunity in front of us,” commented Codat CEO Pete Lord.
Codat reports that they’re now servicing over 200 clients, including a number of the world’s largest banks alongside power player fintechs including Brex, Jeeves, Pipe and Clover, all supported by a team of over 250 individuals located across the UK, North America and Australia.
“Today, we’re in the age of ‘dial-up’ when it comes to business data.” added Lord. “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 only time you’ll notice integrations is when they are not there.”
Codat’s $100 million Series C round was led by J.P. Morgan and saw the participation of Canapi Ventures and Shopify. The announcement also saw Plaid publicly named as an investor for the first time. Existing investors Index Ventures and PayPal Ventures also participated in the round.
Patrick McGoldrick, Partner at J.P. Morgan Growth Equity Partners, who will join Codat’s board as part of the deal commented, “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.”