FinTech infrastructure startup Plaid raised $425 million in a Series D funding round, putting the company’s valuation at $13.4 billion. This is its first funding since its $5.3 billion sale to Visa was blocked.
“In founding Plaid nearly a decade ago, we dreamt of a financial system that was built to empower consumers and unlock financial freedom for everyone. We are humbled to watch as FinTech continues to expand and improve the financial lives of billions of people worldwide,” Zach Perret, co-founder and CEO of Plaid, said in a blog post on Wednesday (April 7).
The new fundraise was led by new investors Altimeter Capital, Silver Lake and Ribbit Capital, with participation from existing backers including Andreessen Horowitz, Index Ventures, Kleiner Perkins, New Enterprise Associates, Spark Capital and Thrive Capital.
The Silicon Valley firm said this fresh infusion of capital will be used to advance the development of a streamlined, integrated platform to facilitate the creation of new and innovative FinTech offerings. Plaid plans to scale to meet the growing demand for digital financial services and expand around the globe, Perret said in the post. The company also envisions developing additional platform products, including upping its investment in APIs to facilitate advanced levels of privacy, automation and customization.
Plaid’s new valuation of $13.4 billion was reported by CNBC, citing a source.
“Our market is seeing a sea change, with consumers that we never thought would be embracing digital finance engaging with it in a big way,” Perret told CNBC, referring to his 70-year-old parents and their friends using digital platforms to manage their money. He said there are no plans right now to go public, but he told CNBC that a listing is something the company envisions for the future.
Plaid enables companies like Microsoft and Google to securely link users’ banking data with financial apps like Venmo. The company said it is looking to start its international expansion by upping the size of its London and Amsterdam offices.
Selected by EFXA