On January 31, 2020, Plaid CEO and co-founder Zach Perret delivered a speech at the Silicon Slopes Technology Summit held in Salt Lake City, Utah, USA.
George Frey | Bloomberg via Getty Images
A few months after the Visa acquisition deal broke down, Plaid raised a new round of funding, almost tripling its valuation.
The fintech company announced on Wednesday that it had raised $425 million in a Series D financing led by Altimeter Capital and the participation of new investors Silver Lake and Ribbit Capital. Early investors Andreessen Horowitz, Index Ventures, Kleiner Perkins and New Enterprise Associates also joined the round.
A person familiar with the matter said that the new financing raised Plaid̵
Early last year, Visa agreed to buy Plaid for $5.3 billion, which was twice the previous valuation of the San Francisco startup at the time. The Justice Department subsequently sued to block the transaction, claiming that it would restrict competition in the payment industry. A few months later, Visa gave up the acquisition. The two companies stated that the decision to terminate the merger was mutual.
Plaid’s technology links bank accounts to fintech applications such as Venmo, Robinhood and Coinbase-all of these applications have achieved amazing growth during the pandemic. Last year, Plaid also added Google and Microsoft as customers, and said that with the surge in digital finance, its customer base has grown by 60% in 2020.
CEO Zach Perret said that the latest cash injection will help Plaid increase the number of employees, which has grown by 40% last year and keeps pace with demand. He pointed to new digital adopters like his parents, whose 70-year-old peers suggested using online financial apps to manage spending.
“Our market is undergoing tremendous changes, and consumers we never thought would embrace digital finance,” Perret told CNBC in a telephone interview.
Plaid has attracted many Silicon Valley and Wall Street investors, including the venture capital institutions of Visa, Citi, Google and Goldman Sachs. Former technology investment banker Mary Meeker (Mary Meeker) has spent ten years in the field of venture capital. He is an early investor and a member of the board of directors of this startup.
Mikel told CNBC in an email: “The financial industry is entering a new era, and Plaid is in a good position to help develop a digital ecosystem to provide consumers with the tools and services they need on a large scale.”
As for the plan to list Tartan publicly, Perrett said, “Nothing will happen in the near future.” He said: “But in the long run, this is of course the direction we want to go.”