London-based company Codat recently raised USD 10 million round from Index Ventures to bridge the gap between small firms and financial institutions to empower business data to travel back and forth in real-time.
Codat plans to disburse the amount to expand its footprint in the US with a new office setup to accommodate a team of 100 employees by year end.
The Codat solution
If you have ever applied for a loan or have sent an application for an insurance product, you know how painful and long-waiting process it can be.
What is Codat doing about this?
Codat is in the process of developing an API, which connects with systems that have relevant financial data. It is essential to know that this information often is distributed across a series of systems. It is also necessary to understand that small businesses use different systems.
Codat deploys a single API to directly plug to software used by small enterprises enabling financial institutions such as banks, fintechs, and other players in the financial domain to access the overall details of a company, right from its accounting software to payment terminals recording real-time transactions.
These APIs eliminate the need to deal with cumbersome Excel documents and PDFs that are sent to and fro via emails. This technique looks promising and aims at simplifying the information sharing process.
What type of data can be fetched using Codat’s brand-new API?
The variety of data ranges from a list of accounting software such as Sage, QuickBooks, and Xero to payment terminals.
Additionally, Codat API connects with data sources that standardize data across services and works on fetching new data that can be set on an hourly or monthly basis or as per a requirement.
The Codat USP
Talking about the performance of the technology, the product has the potential to help banks and fintechs scale and accelerate their offerings to millions of small businesses.
More about Codat
Currently, the company does business with 50 financial providers like Experian, iZettle, and two of the top four banks in the UK.
Every month these institutions process data for about 10,000 small businesses that have interacted with these 50 financial companies.