Zach Perret, CEO and co-founder of Plaid speaks during the Silicon Slopes Technology Summit in Salt Lake City, Utah, USA on January 31, 2020.
George Frey | Bloomberg via Getty Images
Plaid Fintech raised a new round of funding, nearly tripling its valuation, months after Visa bought the deal.
The company announced a $ 425 million Series D funding round Wednesday, led by Altimeter Capital, with participation from new investors Silver Lake and Ribbit Capital, previous investors Andreessen Horowitz, Index Ventures, Kleiner Perkins and New Enterprise Associates. Have participated in this round as well
The new financing increases Plaid̵7;s valuation to $ 13.4 billion, according to a person familiar with the matter, who asked to remain anonymous because the details are private.The Information first reported that Plaid is in the process of raising money.
Earlier this year, Visa agreed to buy Plaid for $ 5.3 billion, which at the time was twice the valuation of the San Francisco startup’s earlier valuation. The Justice Department sued to block the deal, claiming it would limit competition in the payments industry. A few months later, Visa abandoned its takeover effort, the companies said the decision to end the merger was mutual.
Plaid’s technology connects bank accounts with fintech apps such as Venmo, Robinhood and Coinbase, all of which have seen notable growth during the outbreak. Plaid added Google and Microsoft as customers last year and said its customer base. 60% increase in 2020 amid soaring digital finance
CEO Zach Perret said the latest cash injection would help Plaid increase its workforce, which grew 40 percent last year and kept up with demand. He pointed to new digital users such as his parents, whose 70-year-old colleague suggested an online finance app to manage spending.
“Our market is seeing a sea change, with consumers who we never thought would receive digital finance hugely involved in it,” Perret told CNBC.
Plaid has attracted a long list of notable Silicon Valley and Wall Street investors, including venture capitalists Visa, Citi, Google and Goldman Sachs Mary Meeker, a former technology investment banker who spent the past decade on venture capital. Early investors and sit on the board of startups.
“The new era of finance is underway and Plaid is in a strong position to help develop a digital ecosystem that provides the kind of tools and services that consumers need at the right level,” Meeker told CNBC in an email.
As far as he plans to release Plaid to the public, Perret said, “There’s nothing on the near-term horizon,” “but in the long run, that’s the direction we want to go,” he said.