PayPal Ventures, the venture capital arm of payments firm PayPal, announced yesterday that the company has participated in the latest $40 million investment round of Codat, the UK-based technology firm that enables small businesses to easily share business and financial data with financial and other service providers.
According to the official press release, the Series B funding round was led by Tiger Global, an American investment firm, with participation from PayPal Ventures and Index Ventures. This is the second investment from PayPal Ventures in Codat.
Founded in 2017, Codat is a financial technology firm powering the SMB data ecosystem. The company has offices in London, San Francisco, and New York. Codat is currently serving several clients around the world, including lenders and corporate card providers.
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Commenting on the latest announcement, Peter Lord, CEO of Codat, said: “Financial services for SMBs are now changing more and more quickly, and we’re privileged to work with the people and companies who are driving this change to make life better for small businesses. As Codat is the platform on which more and more of this revolution is built, this investment accelerates the industry transformation.”
Codat highlighted that the company has seen substantial growth in the last few months. In addition, the fintech provider has increased the number of employees. “Codat’s API powers services of five of the world’s largest financial institutions, 12 technology unicorns, and many specialized SME providers. These include Brex, Clearco, Zettle by PayPal, FreeAgent, Pipe and Virgin Money. Clients leverage the Codat API for a wide range of small business products, from loan applications, accounting, expense management and insurance products to e-commerce and point-of-sale platforms,” the company mentioned in the official announcement.
In June 2021, PayPal and financial giant Visa participated in Blockchain Capital’s $300 million Fund V to support different companies working in the crypto and blockchain ecosystem. In Q1 of 2021, PayPal reported a total payment volume of $285 billion.