Plaid Raised $425 Million After Visa Deal Falls Through Plaid Raised $425 Million After Visa Deal Falls Through
Plaid Founders

Plaid Raised $425 Million After Visa Deal Falls Through

If you’ve used any number of financial apps over the past few years, there’s a strong chance that you’ve encountered the name Plaid. The firm’s API allows applications to securely connect to users’ banking accounts and retrieve read-only data, enabling aggregation tools among others. This technology has allowed Plaid to grow into one of the largest and most notable FinTechs — and has now garnered them an investment mega-round.

Today, Plaid announced that it had closed a $425 million funding round. The Series D was led by Altimeter Capital while new investors Silver Lake and Ribbit Capital joined existing investors Andreessen Horowitz, Index Ventures, Kleiner Perkins, New Enterprise Associates, Spark Capital, and Thrive Capital in participating. According to TechCrunch, the latest round valued the FinTech at $13.4 billion.

Interestingly, that new valuation is more than double the $5.3 billion that Visa was set to purchase Plaid for when that deal was first announced early last year. That acquisition was called off in January after the Justice Department filed suit to block the deal, alleging that the purchase would allow Visa to “eliminate a nascent competitive threat that would likely result in substantial savings and more innovative online debit services for merchants and consumers.” In terms of other funding rounds, Plaid’s $250 million Series C was closed in 2018 at a valuation of $2.7 billion. To date, the company has now raised a total of $734.3 million.

In a blog post announcing the investment, Plaid co-founder and CEO Zach Perret wrote, “Looking ahead, Plaid is focused on creating a single, integrated platform focused on helping innovators build digital financial products. Doing so requires scaling to meet the increased use of FinTech, expanding globally to meet international demand, and delivering an expanded set of platform products to our customers. This will include continued investment in APIs that help people connect a complete view of their finances, as well as tools and services to support enhanced privacy, personalization, decisioning, and automation.” He concluded, “We could not be more excited for the years to come. Onwards!”

It should come as no surprise that Plaid is once again seeking investments after their near-deal with Visa broke off. Nevertheless, the incredible growth the FinTech has seen since that proposed acquisition was first announced is something to be marveled at. On that note, this Series D also likely signals that Plaid won’t become an acquisition target again anytime soon — although never say never. Instead, expect the company to see more massive funding deals in the future and perhaps a major IPO down the road.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...