Codat - Streamlining SMB Lending with Data-Driven API Solutions
Codat transforms small business data from accounting, banking, and commerce systems into actionable insights with a single API, enabling faster onboarding and efficient underwriting for lenders and fintechs, reducing reliance on outdated methods.
SMB lending still runs on PDFs and gut feel.
Codat fixes that by turning a small business’s accounting, banking, and commerce systems into clean, consented, usable data through one API. If you are a lender, card issuer, or B2B fintech, it means faster onboarding, fewer “send me a spreadsheet” emails, and underwriting that does not start with a file upload.
The company was founded in 2017 by Pete Lord (CEO) with co-founders Alex Cardona and David Hoare. It runs out of London with a US office in New York, because the buyers are often global banks and fast-scaling fintechs selling to SMBs on both sides of the Atlantic.
Where it gets real is the packaging. Codat moved beyond “here’s an API” into opinionated products like Lending, Bank Feeds, Bill Pay, Expenses, and Spend Insights, so customers can ship a use case instead of stitching endpoints for months.
Business model is classic infrastructure SaaS. Usage and scale follow connections, syncs, and the depth of data pulled or written back into systems like Xero and QuickBooks, which creates switching costs once a fintech has embedded Codat into onboarding, decisioning, and reconciliation flows.
Codat raised a $100M Series C in June 2022 led by J.P. Morgan Growth Equity Partners, with Canapi Ventures and Shopify joining, and existing names like Index Ventures and PayPal Ventures returning. Around that time it was valued at roughly $825M, and it has been described as trusted by 300+ clients, which is exactly what you want from plumbing that underwrites loans and moves ledger entries.
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If you are building for SMBs, would you rather own the data connectivity layer in-house, or pay for a Codat-style “one API” and win on distribution?
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