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Codat raises $10 million to aggregate all financial data from small businesses

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Codat raises $10 million to aggregate all financial data from small businesses

London-based startup Codat has raised a $10 million funding spherical from Index Ventures. If you’ve ever tried to use for a mortgage in your small enterprise or stuffed out an utility for an insurance coverage product, you understand it may be a protracted and painful course of.

Codat is constructing an API that connects with all of the techniques that maintain all of the related monetary information. That sort of knowledge is often unfold throughout a number of techniques, and small companies usually use completely different techniques. On the opposite aspect, banks, insurance coverage firms and extra can pace up their inner processes and offer you an informed reply in your subsequent mortgage or insurance coverage product.

Codat presently works with 50 monetary suppliers, equivalent to iZettle, Experian and two of the highest 4 banks within the U.Ok. Every month, these firms course of information from 10,000 small companies which have interacted with these 50 establishments.

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So what sort of knowledge are you able to fetch utilizing Codat’s API? It ranges from accounting software program, equivalent to Xero, Sage and QuickBooks to fee terminals. Codat connects to these information sources, standardizes information throughout companies after which frequently fetches new information — it may be each hour, each month or everytime you need.

Many monetary establishments waste a ton of time getting Excel recordsdata from their prospects to overview stability sheets. As many small companies face some liquidity points proper now, automating information aggregation can pace up the time it takes to safe cash in your checking account after making use of for a mortgage.

With extra correct information and a few stage of standardization, monetary establishments may enhance their fashions extra simply as properly.

As you’ll be able to see, there are some similarities between Plaid and Codat. Plaid, the fintech firm that’s within the technique of being acquired by Visa for $5.three billion, is constructing an API that allows you to fetch monetary information from shopper accounts. If you’ve used Venmo, Betterment, Square’s Cash App or Robinhood up to now, these apps use Plaid to connect with your checking account.

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Codat has a unique focus because it connects with accounting software program and different associated instruments from small companies. But it’s nonetheless a part of a broader development — a number of startups are creating APIs to make numerous functions speak the identical language.

With at the moment’s funding spherical, Codat plans to increase to the U.S. and rent extra individuals — there ought to be 100 staff by the top of the 12 months.

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