As per the UK government, out of 5.9 million private businesses in 2019, more than 99 percent are small or medium-sized businesses (SMEs). To ensure that these SMEs thrive, the Banking Competition Remedies Ltd (BCR) is tasked with implementing the State Aid Alternative Remedies Package (ARP) of £775 Million (€859.8 million).
The aim of BCR’s Fund Pool E Application Period One is to facilitate the commercialisation of financial technology that is relevant to SMEs. It recently declared the results of its Innovation Fund Pool E grant process wherein six UK-based companies, including Codat, have won a combined value grant of €22.2 million.
Six UK-based companies share €22.2 million grant
A total of six companies have been awarded the combined grant of €22.2 million in the latest Fund Pool E grant. Two of the six companies, namely Funding Xchange Ltd and Onfido Limited, scooped up €5.55 million each. While Codat, ezbob, Fractal Labs and Previse were each granted €2.77 million. BCR says it received 92 applications from 67 applicants for the Pool E Application Period One process. The above mentioned six companies will be invited to enter into a Capability and Innovation Fund Agreement with BCR.
Codat to open up its API on a self-serve basis
Codat states, in a media release, that the latest funding will be utilised to open up its API on a self-serve basis. This is said to allow a larger number of fintechs to build new products and services for supporting SMEs. Codat’s API enables connecting the internal systems of small businesses to banks, fintechs and other financial institutions, allowing business data to flow back and forth in real time. The company also recently raised €8.79 million in venture funding.
“Developers, not bankers, are going to be the people to build the financial products we need for small businesses here in the UK. BCR has recognised that by awarding this money to Codat, they are benefiting potentially hundreds of products instead of just one,” Pete Lord, CEO at Codat says. “With BCR’s backing we’ve been able to move much quicker, to ultimately help support British SMEs – and right now, that’s never had more significance. It’s hugely encouraging to see our strong progress recognised alongside the new set of innovators awarded in this latest round.”
The fresh grant of €2.77 builds on the original €5.55 million Codat received from BCR in 2019. The company is currently on track to deliver all of its commitments attached to the previous funding and is confident of over-delivering on its target of at least 100,000 UK SMEs benefiting from new integrated products and services developed on the Codat platform.
Image credits: Codat