Fintech Plaid Is Valued at $13.4 Billion | Barron's
Plaid has raised $425 million in funding just three months after calling off its $5.3 billion sale to
Altimeter Capital led the Series D which included new investors Silver Lake Partners and Ribbit Capital. Existing investors including Andreessen Horowitz, Index Ventures, Kleiner Perkins, New Enterprise Associates, Spark Capital, and Thrive Capital also participated.
The round values Plaid, one of the most sought after fintechs, at $13.4 billion, a person familiar with the situation said.
“A new era of finance is underway, and Plaid is in a strong position to help develop the digital ecosystem that delivers the types of tools and services consumers want, at scale,” said
the founder and general partner of Bond Capital. Meeker, a former partner at Kleiner Perkins, helped the venture firm invest in Plaid in 2018. She is currently a Plaid board member.
Founded in 2012, Plaid’s platform lets users connect their bank accounts to finance apps and transfer money. It integrates with 11,000 financial institutions. For example, Plaid’s technology lets Venmo’s customers pay their friends and family. Plaid works with other well-known fintechs, including the trading platform Robinhood; Transferwise, which offers international money transfers; and Coinbase, a digital currency exchange. Plaid has over 4500 customers, including Google,
(GS) and Dun & Bradstreet (DNB).
a Plaid co-founder and CEO, announced the fundraise in a blog post Wednesday. The Covid-19 pandemic has caused consumers to rapidly shift “their entire financial lives online. A decade of gradual digitization was punctuated by a year of sudden adoption,” Perret said. “Whether paying bills, managing loans, applying for PPP, receiving stimulus checks, buying stocks, or just managing money day-to-day, hundreds of millions of consumers began to see digital finance as the new normal.”
Plaid is looking to create a single, integrated platform focused on helping developers build all aspects of their digital financial products, Perret said. It also plans to continue investing in application programming interfaces, or APIs — which refers to a software intermediary that lets two applications talk to each other — to help people connect to a complete view of their finances. Plaid also wants to invest in tools and services to support enhanced privacy, personalization, decisioning, and automation, the blog post said.
Plaid employs about 700 people and plans to boost headcount by 50% this year across all the places it operates, a spokeswoman said. Plaid has its headquarters in San Francisco and offices in New York, Salt Lake City, Washington, D.C., London, and Amsterdam. It also has employees in Canada (but no office). The company has 100 roles open, the spokeswoman said. Plaid grew headcount by 20% just in the first quarter alone, she said.
In January 2020, Visa agreed to buy Plaid for $5.3 billion. The companies mutually terminated the deal one year later after federal regulators sued to block the merger. Many had expected Plaid to sell to a special purpose acquisition company, or SPAC. The fresh funding makes it unlikely Plaid will sell right now, bankers have said.
Write to Luisa Beltran at [email protected]
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