Plaid’s valuation reached $ 13.4 billion after Visa’s deal was closed

Zach Perret, CEO and co-founder of Plaid, will speak at the Silicon Slopes Tech Summit on January 31, 2020 in Salt Lake City, Utah, USA.

George Frey | Bloomberg via Getty Images

Plaid has raised a new capital round that nearly triples its valuation months after the deal that Visa buys collapses.

FinTech companies announced a $ 425 million Series D funding round on Wednesday. It was led by Altimeter Capital and joined by new investors Silver Lake and Ribbit Capital. Former investors Andreessen Horowitz, Index Ventures, Kleiner Perkins and New Enterprise Associates have also joined the round.

The new funding will boost Plaid’s valuation to $ 13.4 billion, according to someone familiar with the issue, which asked not to name it because the details are private.First information report The plaid was in the process of collecting money.

Earlier last year, Visa agreed to buy Plaid for $ 5.3 billion. That was twice the previous valuation of a San Francisco-based startup at the time.Later Ministry of Justice Proceeded Block transactions by claiming to limit competition in the payments industry. A few months later, Visa abolished its acquisition efforts. The two companies said the decisions to end the merger were mutual.

Plaid technology Link Bank accounts for fintech apps such as Venmo, Robinhood and Coinbase. All of these have grown tremendously during a pandemic. Plaid also added Google and Microsoft as customers last year and said its customer base grew by 60% in 2020 amid a surge in digital finance.

CEO Zach Perret said the latest cash injections will help Plaid keep up with demand by increasing staff, which has already increased by 40% last year. He pointed out new digital hires like parents, whose 70-year-old peer recommends online financial apps to manage spending.

“Our market is undergoing major changes and some consumers didn’t think they would embrace digital finance in a big way,” Pellet told CNBC in a telephone interview.

Plaid collects a star-studded list of Silicon Valley and Wall Street investors, including venture capital firms from Visa, Citi, Google and Goldman Sachs. Former tech investment banker Mary Meeker, who spent the last decade at venture capital, was an early investor and a member of the board of directors of start-ups.

“A new era of finance is underway and Plaid is in a strong position to help develop a digital ecosystem that delivers the types of tools and services consumers want on a large scale,” Meeker emailed CNBC. Said in.

Regarding plans to expose plaids, Pellet said “nothing in the short term.” “But in the long run, that’s certainly the direction we want to go,” he said.

Plaid’s valuation reached $ 13.4 billion after Visa’s deal was closed

Source link Plaid’s valuation reached $ 13.4 billion after Visa’s deal was closed

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