Kody, a UK-based Platform-as-a-Service (PaaS) provider aimed at modernising in-person commerce for larger businesses, has announced the successful closure of its $20 million Series A funding round earlier this year.
This marks a significant milestone for the company, bringing its total funding to $30 million since its founding two years ago. The funding round attracted both new institutional investors and existing shareholders, underscoring the fintech company’s growing influence in the retail and hospitality sectors.
Since its inception, Kody has achieved substantial growth, with its annualised processing volume nearing $1 billion. This impressive figure reflects the platform’s adoption by prominent retail and hospitality brands looking for efficient, scalable solutions. Kody integrates financial infrastructure with operational software to streamline business operations, reduce costs, and enhance profitability. Its approach is particularly attractive to businesses aiming to adapt quickly to the evolving needs of in-person commerce.
“Our platform simplifies business operations by integrating into existing systems, helping businesses reduce operating costs and gain instant access to cash flow,” explained Yoyo Chang, Kody’s founder and CEO.
The company’s proprietary analytics tools, which include customer tracking data and spending insights, allow businesses to refine their loyalty programs and bolster customer retention.
Just yesterday, we also reported about how Portal Ventures unveiled $75M pre-seed crypto fund, the largest yet for early-stage investments. It’s an interesting read too.
What is Kody’s global ambitions
With its Series A funding, Kody is positioning itself for global expansion. The company plans to invest in talent acquisition across key markets, including the UK, continental Europe, Hong Kong, and Singapore. Chang emphasised that these investments are part of a broader strategy to enhance the platform’s capabilities and build strategic partnerships.
“This Series A financing is a testament to our team and validation of our vision,” Chang noted. “We will continue to invest internationally and refine our product offerings to better serve our clients.”
Founder’s vision: From teen entrepreneur to industry leader
Yoyo Chang’s entrepreneurial journey is as remarkable as Kody’s growth trajectory. Born to Taiwanese immigrants in the UK, Chang began investing in the stock market at the age of 13, achieving notable success. His early interest in finance led him to co-found KodyPay, the precursor to Kody, at just 19 years old. Self-financing the startup with an initial investment of £120,000, Chang transitioned from aspirations in investment banking to a hands-on role in the fintech industry.
Chang’s leadership has been instrumental in Kody’s rise from a small startup to a key player in the payments ecosystem. The company was initially envisioned as a tool to simplify payment acceptance for businesses, a mission that has evolved into a comprehensive platform for modernising commerce.
What are the challenges and opportunities in the fintech space
Kody’s rise coincides with broader trends in fintech, including the increasing demand for integrated solutions that bridge digital and physical commerce. However, the company operates in a highly competitive environment, where established players and emerging startups vie for market share. To differentiate itself, Kody emphasises seamless integration with existing systems and a focus on data-driven insights for its clients.
Expanding into international markets presents both opportunities and challenges. Regulatory complexities, cultural nuances, and varying technological adoption rates will require Kody to adapt its approach while maintaining its core value proposition.
What do we think about the update
As Kody looks to the future, its focus on innovation and strategic partnerships will be crucial in maintaining its momentum. The $20 million Series A funding provides the resources needed to expand its footprint and refine its platform to meet the demands of a global clientele. While competition in the fintech space remains fierce, Kody’s ability to deliver tangible value to its partners positions it as a company to watch in the evolving commerce landscape.
The coming years will determine whether Kody can sustain its growth and effectively navigate the challenges of international expansion. For now, its success shows the growing importance of platforms that bridge the gap between traditional business operations and modern technological capabilities.
