Codat, a FinTech that provides APIs which enable small businesses to share business and financial data with service providers, has raised $40 million from investors.

The FinTech, founded in 2016, claims to have doubled its headcount over the past year and to have increased annual recurring revenue (ARR) 300 per cent.

The Series B funding round was led by Tiger Global, whose other investments include Stripe, Brex, and Checkout.com, with existing investors Index Ventures and PayPal Ventures also participating.

Codat said it plans to use the funds to expand its US presence following the launch of its New York office in January, and to add new data products to its API, accelerate hiring, and onboard new customers.

As part of its growth strategy, Codat said it will also expand its San Francisco office.

Codat said companies using its API include Brex, Clearco, Zettle by PayPal, FreeAgent, Pipe, and Virgin Money.

The FinTech said these clients use its offering for a wide range of small business products, including loan applications, accounting, expense management, and insurance products to e-commerce and point-of-sale platforms.

“The number of SMB-focused software products will continue to proliferate, and we expect many of these products to be powered by Codat in the future,” said John Curtius, partner at Tiger Global. “Codat’s customers consistently told us that Codat’s value proposition is incredibly compelling – a faster and better solution at a fraction of the cost as compared to a do-it-yourself approach.”

Peter Lord, chief executive 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.”

He added: “As Codat is the platform on which more and more of this revolution is built, this investment accelerates the industry transformation.”

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